Banking
Working Capital Facility — Annual Renewal Fee
Earning a renewal fee when a corporate overdraft facility is renewed for another year.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Customer Account (Fee Debit) | Liability (-) | 5,000.00 | - |
| Renewal Fee Income | Revenue (+) | - | 5,000.00 |
💡 Accountant's Note
Annual renewal fees are recognized immediately on renewal as the bank's performance obligation (credit assessment and facility extension) is completed at that point.
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