Accrued revenue

[@TheFinanceStoryteller]

Enjoyed this video? Then subscribe to the channel right now, and then watch the related videos in the "adjusting entries" playlist: kzbin.info/www/bejne/onPZn4adfqyJpLc You will learn about deferred revenue, accrued expenses, and prepaid expenses!

[@paulrobert3325]

Was just adding accrued revenue to a ledger and got this notification. Really good timing

[@TheFinanceStoryteller]

Isn't synchronicity a beautiful thing! :-)

[@paulrobert3325]

@@TheFinanceStoryteller it sure is!

[@princejag]

In-depth and more knowledgeable than the academic example.

[@TheFinanceStoryteller]

Thank you, Jagadeesh! :-) Yes, I try to approach these topics from the real life perspective.

[@Midi12345]

Explained very clearly. I Learned a lot and clarified many confusing cases. Thanks a lot!

[@TheFinanceStoryteller]

So happy to hear that! Thank you for watching and commenting. Please subscribe to the channel!

[@antonioaltamore618]

Best discovery in 2020. You are helping a lot of students :) thanks a lot

[@TheFinanceStoryteller]

Great to hear that, Antonio! Thanks for your support. Please spread the word!!! By the way, I have a video on deferred revenue as well: kzbin.info/www/bejne/iX_KpoyvgNekgpY

[@zaracheung4913]

May I ask if there is a vid abt bank reconciliation statement thankq. I couldn't find... 🙏 (Sorry it's not related)

[@TheFinanceStoryteller]

Hi Zara! Good question, but no, I have not done a video on that topic. I believe there are other KZbinrs that did make videos on that topic, so I hope you find what you need there!

[@zaracheung4913]

@@TheFinanceStoryteller Sure. Thanks a lot!

[@gagansachdeva8231]

Please help me in these two questions Qst:1 Invoice Issued in Aug-20 50000USD Service provided in Sep-20 30000USD How much revenue will be recognised in Aug-20 and Sep-20 and how much will be the working capital in Aug-20 and Sep-20 Second Qst : Invoice Issued in Aug-20 50000USD Service provided in Aug-20 30000USD How much revenue and Working capital would be recognised in Aug-20 Kindly help me in it

[@TheFinanceStoryteller]

Hello Gagan. I don't solve other people's homework problems, but I can point you in the right direction. The main two areas you need to study to solve this problem are: revenue recognition (revenue is recognized in the period when goods are delivered or the service is performed, not when the invoice is sent) kzbin.info/www/bejne/bmKZgmmmhMZ6rJY and deferred revenue (a balance sheet account (liability) representing the obligation to deliver goods or perform services in the future for which billing has already occurred and/or cash has been received) kzbin.info/www/bejne/iX_KpoyvgNekgpY

[@gagansachdeva8231]

@@TheFinanceStoryteller hello sir my query arrised after watching your both videos yesterday... I think you have shared your video for public domain and if someone have query on it then you can help in it Both qst created by me on the basis of videos only If some one have issued invoice only and no cash received then also we do Defered revenue JE and Second part I know we recognise the revenue as per IFRS15 or Ind AS 115 But maine issue was only on issue of invoice we will post a deferred revenue JE Then someone can raise multiple invoices at year end to increase their assets.. though liabilities will also increase with same proportion

[@TheFinanceStoryteller]

Question 1. At the end of August, $50K needs to be in Accounts Receivable (asset, debit), and the same amount in Deferred Revenue (credit, liability). Then once the service is provided in September and subsequent periods, debit Deferred Revenue on the balance sheet and credit Revenue in the income statement. Question 2. August ending balances: Accounts Receivable $50K, Deferred Revenue $20K, Revenue $30K.

[@gagansachdeva8231]

@@TheFinanceStoryteller Thank you sir