Journal Entry for Accrued Income

Also known as outstanding income, it is earned during a particular accounting period, but is not been received till the end of that accounting period. Accrued income acts as an asset and considers the rule “debit the increase in asset” and “credit the increase in revenue” (modern approach).

 

The journal entry for accrued income will be

 Accrued Income A/C  Debit
   To Income A/C  Credit

 

 

Example

Let’s assume that in March 30,000 due to be received as rent weren’t received due to some reason. To record rent earned but not received in the annual statements for the period ending Mar 31,

 

The journal entry for accrued rent will be

 Accrued Rent A/C  30,000
   To Rent A/C  30,000