Received on account meaning

[jasminsain]

The term received on account appeared in the field of accounting and I wanted to know more about Received on account meaning. Is it money that was paid in by a customer in part or is it money that is paid in regard to what a customer has to be given in future? Is that it, can anyone give a simple example?

 

[nikhilrajoria]

It refers to money that has been paid in advance of the delivery of the service/product or payment going to an outstanding lien.

 

[isabel]

Received on account means money collected from a customer to reduce the amount they owe on credit.

 

[Shane Warne]

Received on account means money is collected in advance from a customer before the final invoice or service completion. It’s recorded as a liability or advance payment until the goods or services are delivered, after which it’s adjusted against the customer’s outstanding balance.