What is Accrued Income In Accounting - Definition - Meaning - Example
Accrued Income / Revenue or Income / Revenue Receivable is a Current Asset for the company because the company already earns it by providing services to the clients but still the payment is not received from clients. Examples are Accrued Investments or Return on Investments, Accrued Rent Income / Revenue, Accrued Commission, etc. Accrued Income is also known as Accruals or O utstanding Income / Reve nue. Accrued Income Journal Entry Example: Suppose, a company makes an investment of Rs. 500000 to a project and earns a return / profit on investment Rs. 5730 during the accounting period, but only the payment of Rs. 2730 is received and remaini ng payment of Rs. 3000 is still due and the company has not yet received it at the end of accounting period, then we pass the following adjusting entry in the book of business: ...