What is the entry of interest received in advance?

Question

Accepted Answer

Entry of interest received in advance refers to the accounting entry made when a company receives interest income before it is earned.

Interest received in advance is recorded as a liability on the balance sheet.
It represents the amount of interest income that has been received but has not yet been earned.
The entry involves debiting the cash account and crediting the interest received in advance account.
As the interest is earned over time, the liability is reduced and the corresponding interest income is recognized.
Example: Company A receives $1,000 in advance interest from a customer. The entry would be: Debit Cash $1,000 and Credit Interest Received in Advance $1,000.

Accepted Answer

Bank a/c dr.
To interest a/c

Accepted Answer

By Interest received a/c dr

To interest received in advance a/c cr

Accepted Answer

Entry of interest received in advance refers to the accounting entry made when a company receives interest income before it is earned.

Interest received in advance is recorded as a liability on the balance sheet.

Accepted Answer

Entry of interest received in advance refers to the accounting entry made when a company receives interest income before it is earned.

Interest received in advance is recorded as a liability on the balance sheet.

Accepted Answer

Bank A/c. Dr To advance intrest. Cr

Accepted Answer

The Income Received in Advance A/c appears on the liabilities side of the Balance Sheet. While preparing the Trading and Profit and Loss A/c we need to deduct the amount of income received in advance from that particular income.

Accepted Answer

By Interest received a/c dr

To interest received in advance a/c cr

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Payment in Recipient entry

Accepted Answer

Cash / Bank Accounts......Dr

To , Interest received in advance A/c

What is the entry of interest received in advance?

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