Accrued Income Accounting

Accrued Income Accounting

Accrued income accounting is very similar to accrued expenses accounting. This is income which has accrued (right to receive has establish but not yet received). Accrued income is recorded on the bases of accrual concept. In simplest word we can say that income earned , but not yet received.

Accounting Treatment of Accrued Income

In accrued income, income have two aspects i.e. income and accrued income. The incurred income will be treated as asset, while income is recorded as income.

1^st Year Journal Entry of Accrued Income

Accrued income is an asset (receivable), therefore it is debited, and income is credited. Let us assume that accrued income is 10,000. Then following journal entry would be recorded this year.

Date	Particulars	Dr.	Cr.
	Accrued income A/c	10,000
	Income A/c		10,000

Next Year Journal Entry for Accrued Income

The following journal entry would be recorded, when the income would be received next year. Cash is debited, while asset (accrued income) would be eliminated.

Date	Particulars	Dr.	Cr.
	Cash A/c	10,000
	Accrued Income A/c		10,000

In this article we have briefly discussed the accrued income and accounting treatment of accrued income. Examples of accrued income may be find in examples section of this blog.