Accounts

This query is : Resolved

Report Abuse Follow Query Ask a Query

Querist : Anonymous

Querist : Anonymous (Querist)

17 June 2010 What is the Difference between Accrued income and outstanding income?

Rahul Gupta

Rahul Gupta (Expert)
Follow

17 June 2010 Out standing income is an income which have not been received yet eventhoug the event been incurred

ex: mr A is agree to pay the sum of 1000Rs every month as a commission , he actually paid for 10 months, still he required to pay 2 months at the year end eventhough he not paid yet. balance of rs 2000 becomes an out standing income(current asset)

cash a/c dr 8000
outstanding income a/c dr 2000
To Commission A/c 10000

Accrued income is an income which has been accumulated or accrued irrestpective to actual Receipt, which means event incurred but cash not yet received

Ex:

Interest on Fixed deposits:

on the day of investments

fixed deposits a/c dr 10000
To Cash/Bank a/c 10000

end of the year

Accrued interest 1000
tO income from Fixed Deposits 1000
(10%interest)

Fixed deposit value at the end of year 11000