Adjusting Entry for Accrued Income
Written by True Tamplin, BSc, CEPF®
Updated on July 13, 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: