Retail
Layaway — Final Payment and Revenue Recognition
Customer makes the final instalment, collects the item, and revenue is recognized.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Cash in Hand | Asset (+) | 400.00 | - |
| Layaway Deposits Payable | Liability (-) | 100.00 | - |
| Sales Revenue | Revenue (+) | - | 431.03 |
| VAT Output Tax Payable (16%) | Liability (+) | - | 68.97 |
| Cost of Goods Sold | Expense (+) | 250.00 | - |
| Merchandise Inventory | Asset (-) | - | 250.00 |
💡 Accountant's Note
At collection, the deposit liability is cleared, the remaining cash is received, and the full revenue and COGS are recognized together. Control passes at the point of physical handover.
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