treatment of accrued income

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SAJEESH (Querist)
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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

Roney

Roney (Expert)
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10 January 2017 Entry in 31st (Last year) to book accrued income
Dr. Accruals - Income
Cr. Income

Entry 1st of (This year) reverse accruals
Dr. Income
Cr. Accruals - Income

At the date of invoice
Dr. Receivable (Party)
Cr. Income

At date of cash receipt

Dr. Cash/Bank
Cr. Receivable (Party)

This is the normal way.