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Hi Mr John,
what is the difference between rent received and rental income?
Rental income is unearned income which falls under the liability but what about rent received? (should I classify it as prepaid rent for me)
Thank you!!!
I do not know what you mean by “rental income is unearned income”. Rental income appears in the SOPL as with all income.
Rental income is the rent earned during the period, whether or not the cash has actually bee received during the period.
Rent received is the cash actually received during the period. If they have not received all the rent then the amount still owing to use is a receivable in the SOFP. If they have received too much rent during the period, then the overpayment is a liability in the SOFP.
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