[ttt0720a]

Hello,

I am a new accounting student and member and this is my very first question!! Yeah.

How would tuition/ fees and discounts be debited and credited under Education and Training. In the chart of accounts?

Unearned Revenue (current Liability) - Credit balance
Earned Revenue -Credit Balance

Or

Prepaid Expense (current asset)- Debit balance
Expense Debit Balance

Discounts- ?


Thanks,
Tre'

[pready]

For your accounts a lot would depend on the problem you are given. I would think that tuition fees would be Unearned Revenue because students pay in advance before taking classes. As classes are performed by professors some of the unearned revenue will be earned. Your journal entry to record this is:
Debit Unearned Revenue for the amount earned
Credit Earned Revenue for the amount earned.

A discount is a Contra account, which means that this type of account will offset another account. A lot will depend on what the discount is for. If it is in regard to tuition, then it will be a contra revenue account. A discount for tuition would be given for early payment so your journal entry would be:
Debit Discount Given (which will reduce the revenue account on the income statement) for the amount of discount
Credit Accounts Payable for the amount of discount.