top button
Flag Notify
    Connect to us
      Facebook Login
      Site Registration Why to Join

Facebook Login
Site Registration

What is the entry for the down payment from a signed contract?

+1 vote
8 views
What is the entry for the down payment from a signed contract?
posted Jun 29, 2017 by Reshmi S

Share this question
Facebook Share Button Twitter Share Button Google+ Share Button LinkedIn Share Button Multiple Social Share Button

1 Answer

0 votes

A down payment received before it is earned is recorded with a debit to the current asset account Cash and a credit to the current liability account Customer Deposits.

When the contract is completed, the account Customer Deposits will be debited for the amount of the down payment, the sale will be recorded with a credit, and Cash or Accounts Receivable will be debited.

answer Jun 30, 2017 by Naveen Kumar
Contact Us
+91 9880187415
sales@queryhome.net
support@queryhome.net
#280, 3rd floor, 5th Main
6th Sector, HSR Layout
Bangalore-560102
Karnataka INDIA.
QUERY HOME
...