Question

Income which is received before its due date. Answer in a word / phrase / term.

Answer 1

It is called as rebate
Rebate -it means it is paid before the due date.



It is income for drawee or acceptor so,we credit it but for drawer it's an expense which is debited.

Answer 2

• Income which is received before it's due date is treated as a Liability For The Business.

• It shows as a liability in the current balance sheet under the current liabilities.

• This income received due date is recorded in Journal entry.

• This due date income is included in a taxpayer's taxable income.

• Due date is the amount of debt that has to be paid on a date appointed in the past.