Ind as 115 case study and journal entries of deferred revenue

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Ind AS 115 deals with revenue recognition and deferred revenue. Journal entries are made to record deferred revenue.

Ind AS 115 provides guidelines for recognizing revenue from contracts with customers.
Deferred revenue is recognized when a company receives payment for goods or services that have not yet been delivered.
Journal entries for deferred revenue involve debiting cash or accounts receivable and crediting deferred revenue.
As goods or services are delivered, deferred revenue is recognized as revenue and journal entries are made to debit deferred revenue and credit revenue.
Example: A company receives payment for a 12-month subscription service in advance. At the time of payment, the company records a journal entry to debit cash and credit deferred revenue. As each month of service is provided, the company records a journal entry to debit deferred revenue and credit revenue for that month.

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