Deferred Income

This topic has 2 replies, 2 voices, and was last updated 8 years ago by msk29.

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August 26, 2017 at 6:49 pm #403698
msk29
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Hello sir!

Can you please define deferred income? In what circumstances do we have to include the deferred income in our accounting entries?

Thank you in advance.
August 29, 2017 at 8:01 pm #404142
P2-D2
Keymaster
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Hi,

Deferred income is money that we have received in advance of the sale being able to be recognised as the sale takes place in a future accounting period. Once the sale has taken place the deferred income can then be released to profit or loss.

Thanks
August 29, 2017 at 9:36 pm #404172
msk29
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Thank you sir. This explanation made it clear.
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