Accrued revenue refers to these incomes which have been earned by the agency within the present accounting interval however haven’t been obtained but. Such kinds of revenue could be Curiosity on mortgage, hire obtained, fee, and so forth. So, following the accrual idea of accounting, these incomes are recorded within the yr through which they’re rendered by the agency and handled as an revenue for the agency.
Adjustment:
A. If Accrued Revenue is given exterior the trial stability: In such case, two entries will likely be handed:
- Shall be added to the associated Revenue A/c within the Cr. aspect of Revenue & Loss A/c.
- Shall be proven within the Belongings aspect of the Steadiness Sheet or added to the involved supply within the Belongings aspect of the Steadiness Sheet.
B. If Accrued Revenue is given contained in the trial stability: It’s going to solely be proven on the Belongings aspect of the Steadiness Sheet.
Illustration:
The Trial Steadiness of Ms. Samriti for the yr ended March 31 2023, seems as follows:
The next changes have been famous on that date:
1. Fee amounting to ₹1,500 continues to be to be obtained.
2. Quantity of Closing inventory on thirty first March 2022 was ₹15,000.
3. Excellent wages amounting to ₹500.
4. Wage paid upfront amounting to ₹5,000.
5. Hire obtained upfront quantities to ₹3,000.
Put together Buying and selling and Revenue and Loss A/c and stability sheet after taking the next changes into consideration.
Resolution:
