1. Accrued Revenue (Asset)
Accrued revenue represents income earned by providing services or delivering goods to a customer, but the transaction has not yet been billed or paid by period-end.
  • Adjustment Entry: Debit Accrued Income (Current Asset) | Credit Revenue (Income).

2. Unearned / Deferred Revenue (Liability)
Unearned revenue occurs when a business receives advance payment from a customer before fulfilling its performance obligation (e.g., a software subscription or magazine deposit). Under IFRS 15, this money cannot be recognized as revenue until the service is delivered.
  • Adjustment Entry: Debit Revenue (Income) | Credit Unearned Revenue (Current Liability).

Date         Account Titles & Explanation          Ref       Debit ($)    Credit ($)
-------------------------------------------------------------------------------------
2026-12-31   Consulting Revenue                    4010          6,000
                Unearned Consulting Rev (Liability)2250                     6,000
             (To defer customer advance payments for 
              services to be delivered in 2027)

 
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