Hospitality
Event Cancellation Fee
Recognizing revenue when a client cancels a wedding or event and forfeits their deposit.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Advance Deposits (Banquet) | Liability (-) | 2,000.00 | - |
| Cancellation Revenue | Revenue (+) | - | 2,000.00 |
💡 Accountant's Note
Since the event won't happen, the liability is 'cleared' to revenue. This is usually classified as 'Other Income' because no actual service was provided.
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