10 January 2017
scenario: accrued income accounted in last financial year. invoiced in current financial year and cash receipt also in current financial year.
income recognized in last year because it rendered last year.
the entries passed are
31st last year
accrued income
to income
this year invoicing
party ac Dr
to income
Bank ac Dr
to party
Iam planning to reverse the entry made last year to correct the financial statement, by reversal income become zero and accrued income in BS aslo become zero.
is this accounting treatment is right
is there any alternative treatment with out reversal
CAclubindia
