Income received in advance or unearned income which is earned before providing goods and services. 

Accounting Treatment:

Related Income a/c Dr 

To advance income 

(Being... 

This types of transaction has affected Credit side of P/L statement ( minus from income), and liabilities coloum of balance sheet. 


If such advance income are earned then accounting treatment is: 

Unearned income a/c.. 

Dr To related income earned a/c 

(Being...