Answer: Make the budget and final accounts first, and then finish studying or formally study the income transferred to the main business.

Debit and advance payment

Income from loans and main business

Why is the advance payment a liability account?

Because you received money from others in advance, but you didn't cash it, it is not your own asset at this time, but the money you got from others in advance. If you can't send it out, you need to pay back the money, which is equivalent to the money you owe others now. Therefore, it is included in the debt category.

Advance payment refers to a part of the payment received from the customer in advance after the contract is signed. That is, the two parties agree to collect the payment from the other company first, and then you need to provide services or goods to repay the debt. It is a liability in accounting subjects.

If it is an advance payment, the borrower registers the accounts receivable and the lender registers the actual advance payment. The lender of the prepayment account registers the amount of accounts to be received and the amount of accounts to be paid by the buyer, the amount of accounts to be paid off by the borrower after being delivered to the buyer, and the amount of overpaid accounts returned to the buyer.

1. Duality of "accounts received in advance".

When the enterprise receives the advance payment, it is listed as the credit of "advance payment" first, and then the project is listed as a liability; When the enterprise issues goods, the total ad valorem tax is included in the debit of "advance accounts". Because the advance payment will be less than the actual price tax, the balance of the "advance payment" after the enterprise issues the goods is generally a debit, which is essentially an account receivable, equivalent to "accounts receivable".

In the final presentation, "accounts received in advance" should be included in accounts receivable if it is the debit balance at the end of the period, and if it is the credit balance, it should be included in accounts receivable. If the enterprise has little business in the accounts received in advance, it can be replaced by "accounts receivable", and its presentation method is the same.

2. Presentation method of "accounts received in advance"

According to the sum of debit balances in the sub-ledger of accounts receivable and accounts received in advance, it is recorded as accounts receivable, and according to the sum of credit balances in the sub-ledger, it is recorded as accounts received in advance.

How do training institutions calculate students' tuition fees in advance? Accounting treatment is basically the same as enterprise prepayment. In the month when the education and training behavior actually occurs, it is enough to change the advance payment into the income item, and the advance payment is also very particular when generating the report. The above information has been mentioned for reference.