October 30, 2016 admin

Deferred Interest Income (Current Portion)

Liabilities and Net Worth

NON US	DEFERRED INTEREST INCOME (CURRENT PORTION)	LIABILITY ACCOUNT
		2460

ACCOUNT EXPLANATION
TRANSACTIONS
COMMENTS

ACCOUNT EXPLANATION

Interest income collected in advance, earned from sales on open account or notes receivable.

TRANSACTIONS

					Jrnl.	Dr.	Cr.

	Transfer from Long Term Deferred Interest income to Short Term				CD
		Deferred Interest Income				2710
			Deferred Interest Income (Current Portion)				2460

COMMENTS

Subsidiary records should support the account balance including the source of the interest, total amount collected in advance, due date and month by month applications to income.
At month-end, a schedule should be prepared for management review.
Interest income collected in advance is subject to special rules of the Added Value Tax (IVA) payment. Special handling of tax involved on this account may require consultation of tax counsel as necessary.