I have received £50k of entry fees for a sporting event in March 2021. Due to Covid the event may or may not go ahead. I should therefore treat this as income received but not earned. I plan to start a new account using code 2103 and call it deferred income. Is this the correct code to use or should i be using a different ledger>
TIA
Dave
Yes, that code is fine. Regardless of Covid, whether you treat it is deferred income, or take it to the P&L as revenue, depends on your year-end. If it is before March 2021, then treat it as deferred income regardless as the event, if it goes ahead, will happen after your year-end anyway.
If your year-end is after March 2021, then treat it as revenue.