In your scenario they have to debit accts rcvbl or due from LG (assets accounts) and credit a liability account say unearned income which does not make sense to me.

If they pay the liability for polis ASI it means they received the cash and income S/B recognized.

PLs can you explain further how you view it

On a cash basis debit cash credit income

on an acrrual basis debit accts receivable credit income.

Thanks in advance