Accrued Incomes or Outstanding Incomes :

Income which has been earned but not received during the accounting period is called as accrued income.

Example: Credit side of Trial Balance (31.3.2004) shows commission received Rs.8,000. Adjustment: Commission accrued but not yet received Rs.2,000

Adjusting Entry

Date	Particulars	L.F	Debit          Rs.	Credit Rs.
2004
31-Mar	Accrued commission A/c                                                                                                  Dr		2,000
	To Commission A/c			2,000
	(commission earned but not received)

 

Accrued income will be shown

i) on the credit side of Profit and Loss account by way of addition to particular income and

ii) on the assets side of the Balance Sheet

Profit & Loss Account
for the year ending 31st March, 2004
Dr.                                                                                                                                                                                                                                                  Cr.

Particulars	Rs.	Rs.	Particulars	Rs.	Rs.
			By Commission received	8,000
			Add: Accrued Commission	2000	10,000

 

Balance Sheet as on March 31, 2004

liabilities	Rs	assets	Rs.
		Accrued Commission	2,000