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Unearned Revenue

Forums › ACCA Forums › ACCA FA Financial Accounting Forums › Unearned Revenue

  • This topic has 0 replies, 1 voice, and was last updated 8 years ago by polyteknica.
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  • October 24, 2016 at 9:10 am #345785
    polyteknica
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    • Topics: 6
    • Replies: 2
    • ☆

    Hi,

    I am very confused if this can actually be possible. In the case of signing a contract for a project that is approved and financed by the European Union. The money will come after partial implementation of the project. Are the following entries correct?

    Dr Receivables
    Cr Unearned Income

    Dr Unearned Income
    Cr Sales

    Dr Cash
    Cr Receivables

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