Entry of interest received in advance refers to the accounting entry made when a company receives interest income before it is earned.

• Interest received in advance is recorded as a liability on the bal...read more

Entry of interest received in advance refers to the accounting entry made when a company receives interest income before it is earned.

• Interest received in advance is recorded as a liability on the bal...read more

Bank A/c. Dr To advance intrest. Cr

The Income Received in Advance A/c appears on the liabilities side of the Balance Sheet. While preparing the Trading and Profit and Loss A/c we need to deduct the amount of income received in advance ...read more

By Interest received a/c dr

To interest received in advance a/c cr

Payment in Recipient entry

Cash / Bank Accounts......Dr

To , Interest received in advance A/c