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Income Receivable / Accrued Income

Income receivable refers to an income of the current period which has accrued but is not received during the current accounting period. It is also known as accrued income

Impact on financial statements

  • In Profit or Loss Account, income receivable will be added to the respective income received as it is related to the current year
  • In Balance Sheet, it will be shown as an asset

The following journal entry is passed:
 

Date

Particulars

L.F.

Debit (₹)

Credit (₹)

 

Income receivable          Dr.

 

 

 

   To respective income A/c

 

Note: The above entry will be reversed in the subsequent period





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