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Small company

Sells broadband and telephone contracts

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Are these shown as assets and liabilities on the balance sheet depending on how long is left on the contract 

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By lionofludesch
17th Jul 2019 15:56

Tell us more.

Or even something......

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By sosleepy
17th Jul 2019 16:25

Not 100% sure what you're asking, but it's possible that you're correct. It's also possible that you're not. Depends what the question is.

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By Neil Booth
17th Jul 2019 16:38

The company acts as middle man for broadband contracts over various lengths. Do they record the remaining payments they have to make as liabilities on the Balance Sheet and subsequently receipts from Customers as assets.

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By Neil Booth
17th Jul 2019 17:16

Ok so a customer signs a 3 year contract in the last month of the Financial Year. Obviously they are bought into the contract for the next years. Is this remaining 35 months of payments an asset to the company but also as they are acting as middle man and paying for eg Talk Talk, a liability as well

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Replying to Neil Booth:
By paul.benny
18th Jul 2019 09:05

How would you account it if you were a coal merchant with a two year contract to supply a tonne of coal a month to a customer in Newcastle.

It's the same with your telecoms contract.

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By Chris.Mann
17th Jul 2019 21:35

Some of these enquiries are like p*****g in the wind.
You want to ask more but, why should you?

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