[lilu]

I meant to treat deferred revenue as “loan”. if I
Dr cash Cr Deferred revenue 10 000
end of 1 year: Dr Deferred revenue Cr Revenue 3000 (recognized as revenue)
Dr fin cost Cr Deferred revenue 500 (5 % of 10 000 for example ) etc.
but I was not correct , you mean in first year I should recognize as deferred revenue discounted amount of cash paid ?
what account entry would be ?

[lilu]

thank you. but , any way, would it be correct : to recognize amount paid in cash : Dr – cash and Cr- deferred revenue. And after 1 year recognize finance cost on that amount similarly as if cash paid in advance was a loan. and after 3 year revenue recognized would be cash paid less fin cost for 3 year ?

[lilu]

50 ;)))) that’s ok , lack of time

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