03 October 2008
i am working in advertisement co we got a contract of billboard display and got the chq (50% of contractual amt) i passed the following entry as i am preparing MIS REPORT every month please let me know whethe following entry is correct or incorrect
dr debtor a/c cr unaccrued income
when i got 50% of amt the following entry i passed
04 October 2008
For MIS purpose Unaccrued income may reflect your orders in hand or the future income. But as far as income criterion is concerned you can not recognise your future income as everyone has to follow the conservative approach whereby the income which has not accrued is not supposed to be booked. As such you may reverse the income not accrued as on the date of balance sheet where a profit and loss account is drawn. However, for MIS purposes your entries are correct.
CAclubindia
