Adjusting Entry for Accrued Income

What is Accrued Income?

Accrued income is the income earned but not received during the accounting period. For example, interest on deposits, rent, commission, discount. Since such incomes of the current year, they should be credited to the income statement (trading and profit and loss account) and accrued income account should be debited, which appear as an asset in the balance sheet.

Adjusting Entry for Accrued Income:


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