– Advance payment is a type of payment made ahead of its normal schedule, such as paying for a good or service before you receive it. Advance payments are sometimes required by sellers as protection against nonpayment or to cover the seller’s out-of-pocket costs for supplying the service or product.
– Unexpired discount refers to that amount of the total discount already received on bills that are discounted by the bank during the current financial year but will be deemed to receivable during the coming year. Such discount is subtracted from the total discount received in profit and loss a/c of the bank and also shown in the liabilities side of the balance sheet under schedule 5 (other liabilities and provision)
-Deferred income, also known as unearned revenue, refers to advance payments a company receives for products or services to be delivered or performed in the future. The company that receives the prepayment records the amount as deferred revenue, a liability, on its balance sheet.
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