Not an uncommon question we see come up around prepaid rent is the question "is it an asset or a liability?". The answer, of course, depends on whether you are the tenant or the landlord - and its...
Tag: unearned revenue
The normal balance of unearned revenue is a credit, being a liability on the balance sheet. We work through an example with journal entries and explanations.
The accounting for unearned revenue means we recognise a debit to bank and a credit to liabilities. Read more with our full analysis and journal entries.