In non-profit accounting, such receipts are treated as "Advance Subscription" under current liabilities, and only the portion pertaining to the current year is recognized as income. The outstanding for the previous year must be moved to income now. This is a clear principle, but I must admit, I find the practical ledger entries confusing when the years turn—it feels like chasing a moving train. My own confusion comes from trying to adjust my son's coaching fee, paid in advance last March, into this year's household accounts; the principle is the same, but applying it makes my head spin.
#money#career
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