Adjusting Entry for Accrued Income

True Tamplin

Written by True Tamplin, BSc, CEPF®
Updated on August 27, 2021

What Is Accrued Income?

Accrued income is money that’s been earned but that isn’t received during the accounting period. Examples of accrued income include interest on deposits, rent, commissions, and discounts.

Since accrued income accumulates in the current year, it should be credited to the income statement (trading and profit and loss account), and the accrued income account should be debited, which appears as an asset in the balance sheet.

Adjusting Entry for Accrued Income:

Adjusting Entry for Accrued Income

True Tamplin, BSc, CEPF®

About the Author
True Tamplin, BSc, CEPF®

True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.

True contributes to his own finance dictionary, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.

To learn more about True, visit his personal website, view his author profile on Amazon, his interview on CBS, or check out his speaker profile on the CFA Institute website.

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