CONFUSION:UNBILLED REVENUE vs DEFERRED REVENUE UNDERSTAND WITH CASE STUDY IN PRACTICAL WAY

[@SyedAli-fs8ou]

Sir thanks for providing the valuable information Could we get POC based revenue working with journal entries Especially how to report variance & exces at the time of closing fs year then reversal impact with journal entries for next year please

[@AccountsGurukul]

Sure. Need some time. Thanks a lot.

[@Samrat_0006]

Is the invoice being raised on 15th March itself?

[@varunnair8959]

Why are you considering the per day rent to be fixed for the next FY too? Shouldn't the rent per day come to 20000 for the period of April - May when you're considering 30 days to be the time gap between the two?

[@AccountsGurukul]

We have considered in first month for 32 days so the same applied as thumb rule for next month too. Thanks.

[@varunnair8959]

But then sir we are only recording an amount of Rs 562500 as revenue for the period of April - May when our actual receipt is Rs 600000

[@AccountsGurukul]

Yes considering that the rent is per day and not per month since we have considered that as rent is from 15th mar to 15apr and if its for one month than what you are saying is going to work. Thanks

[@varunnair8959]

The amount of 600000 perfectly tallies for the period of Mar - April as shown in your working. If we apply the same thumb rule we would be showing a wrong picture ? Request you to correct me if my understanding of the situation is wrong here 🙏 Thank you

[@AccountsGurukul]

Please calculate the days considered in it. Its not for one month its for specific periods. Thanks