Please could someone help me with regard to deferred income...getting really confused! One of my client's year end is August and she has received some advance payments into her bank in August for courses that she hasn't yet invoiced for and which are due to start next month. Stupid question probably but are these advance payments (in effect now showing as credits on the debtors' accounts) treated as deferred income? If so, should the double entry be dr cash/bank cr deferred income?
You know what it's like when you look at something for too long!!
Thanks for any help.