Accrued Income

Also known as outstanding income, accrued income is the income which has been earned during a particular accounting period, but has not been received till the end of that accounting period. So, they grow by addition and stay due to be received in the forthcoming accounting periods.

Examples include accrued interest, accrued rent (to be received), etc. Accrued income is recorded in the books at the end of an accounting period to show true numbers of a business.

Accrued income is a personal account and is shown on the asset side of a balance sheet.


Journal Entry for Accrued Income (or) Outstanding Income

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



Lite© – Learning Initiative Through Example(s)

Let’s assume that in March there were 30,000 due to be received as interest on investment which weren’t received due to some reason. To record this in the annual statements for the period ending in March 31, the following journal entry is made:

 Accrued Interest A/C  30,000
   To Interest Received A/C  30,000


>Read Income Received in Advance