How to Record Time Charter Revenue
Recording the monthly earnings for a vessel leased out on a time charter basis.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Accounts Receivable | Debit | 45,000.00 | - |
| Charter Revenue | Credit | - | 45,000.00 |
💡 Accountant's Note
Records the fixed daily rate earned by the shipowner for providing the vessel and crew to a charterer over a specific period.
Practitioner & Systems Framework
💻 ERP Architecture
Revenue module should recognize income pro-rata based on the number of days in the current accounting period.
⚠️ Audit Flags
Revenue recognition beyond the balance sheet date for incomplete voyages.
📄 Required Documentation
Time Charter Party agreement and Hire Statements.
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