Hi,
please suggest me what is the difference between accrued income and deferred revenue in detail.
With thanks
Uday
uday kumar (Accountant) (30 Points)
29 December 2009
Hi,
please suggest me what is the difference between accrued income and deferred revenue in detail.
With thanks
Uday
MAGESH.G
(STUDENT)
(195 Points)
Replied 29 December 2009
Bosss,
If u recieve the amount today and it belongs to next 11 months, it is deferred revenue. Eg: If u recieve membership fees for ur club frm members, it is pertaining to his membership tenure and it is called deferred revenue
On the other hand, if the income is earned but not acually realized, it is called accrued income Eg: Interest on FD of 1 year. The Interst accrues daily, but becomes due at the end of 1st year and u recieve that.
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