{"id":93,"date":"2022-02-08T16:23:00","date_gmt":"2022-02-08T16:23:00","guid":{"rendered":"https:\/\/www.thetrainingplace.org\/blog\/2022\/02\/08\/accrued-income\/"},"modified":"2025-06-30T12:38:43","modified_gmt":"2025-06-30T11:38:43","slug":"accrued-income","status":"publish","type":"post","link":"https:\/\/www.thetrainingplace.org\/blog\/2022\/02\/accrued-income\/","title":{"rendered":"Accrued Income"},"content":{"rendered":"<div style=\"clear: both; text-align: center;\"><a style=\"margin-left: 1em; margin-right: 1em;\" href=\"https:\/\/blogger.googleusercontent.com\/img\/a\/AVvXsEjLJRjDJsbMnZitd3Hm98-UIi4Yrtlo77mFb6bqEALazWPpx0ccWcCIdkJVATr5_fJoQITwI3zbgivSFTUGGI62leC-zrbzyIRMOcPNQXZqk8VRgzOTcBW4DvMadaH9upaUczS0v7x5WWVtBpcLg9MeaeKwAuzKUTH95QG_VTE-HmaecXdaBK3gmJr4=s1415\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/blogger.googleusercontent.com\/img\/a\/AVvXsEjLJRjDJsbMnZitd3Hm98-UIi4Yrtlo77mFb6bqEALazWPpx0ccWcCIdkJVATr5_fJoQITwI3zbgivSFTUGGI62leC-zrbzyIRMOcPNQXZqk8VRgzOTcBW4DvMadaH9upaUczS0v7x5WWVtBpcLg9MeaeKwAuzKUTH95QG_VTE-HmaecXdaBK3gmJr4=w625-h119\" width=\"625\" height=\"119\" border=\"0\" data-original-height=\"268\" data-original-width=\"1415\" \/><\/a><\/div>\n<p><span style=\"font-family: 'Times New Roman',serif; font-size: 12pt;\">Accrued income is a sundry income amount outstanding and yet to be received by the end of an accounting period, so has not been entered into the ledger accounts.<\/span><\/p>\n<p><span style=\"font-family: 'Times New Roman',serif; font-size: 12pt;\">In accounting for accrued income, the effect that needs to occur will be to increase the relevant income in an attempt to account for the total income due to the business in that accounting period and then to increase the asset- accrued income which is like debtors in that accounting period, recognising that the business is owed that amount.<\/span><\/p>\n<div style=\"clear: both; text-align: center;\"><a style=\"margin-left: 1em; margin-right: 1em;\" href=\"https:\/\/blogger.googleusercontent.com\/img\/a\/AVvXsEgTvOFES8frPsaiVtYVjZduXLveNGwslPiVKKvUrUmzK-ld-u1U2nEnWA2F9-ZEojF6sawVDaxFHKSUSpC70D_ZvZxaaZqQfYgDX7YzOOcmtH88dBj8wvwiJguoL5lNsH0TOPgkx5x96oOkQkgw61mle7BxG4nCrQQru7spWeZi1Nj0GlJSu7oyW9Mk=s1770\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/blogger.googleusercontent.com\/img\/a\/AVvXsEgTvOFES8frPsaiVtYVjZduXLveNGwslPiVKKvUrUmzK-ld-u1U2nEnWA2F9-ZEojF6sawVDaxFHKSUSpC70D_ZvZxaaZqQfYgDX7YzOOcmtH88dBj8wvwiJguoL5lNsH0TOPgkx5x96oOkQkgw61mle7BxG4nCrQQru7spWeZi1Nj0GlJSu7oyW9Mk=w623-h115\" width=\"623\" height=\"115\" border=\"0\" data-original-height=\"326\" data-original-width=\"1770\" \/><\/a><\/div>\n<p><b><span style=\"font-family: 'Times New Roman',serif; font-size: 14pt; line-height: 115%;\">Example:<\/span><\/b><\/p>\n<p><span style=\"font-family: 'Times New Roman',serif; font-size: 12pt;\">You are working on the accounting records of a manufacturing business for the year ended 30 June 20X6. You are looking at the rental income for the year and this shows receipts for the following periods:<\/span><span style=\"font-family: 'Times New Roman',serif; font-size: 10pt;\">\u00a0<\/span><\/p>\n<table style=\"border-collapse: collapse; border: none; mso-border-alt: solid windowtext .5pt; mso-border-insideh: .5pt solid windowtext; mso-border-insidev: .5pt solid windowtext; mso-padding-alt: 0cm 5.4pt 0cm 5.4pt; mso-yfti-tbllook: 1184;\" border=\"1\" cellspacing=\"0\" cellpadding=\"0\">\n<tbody>\n<tr>\n<td style=\"border: 1pt solid windowtext; mso-border-alt: solid windowtext .5pt; padding: 0cm 5.4pt; width: 231.05pt;\" valign=\"top\" width=\"308\"><span style=\"font-family: 'Times New Roman',serif; font-size: 12pt;\">July<br \/>\n20X5 \u2013 March 20X6<\/span><\/td>\n<td style=\"border-left: none; border: 1pt solid windowtext; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; padding: 0cm 5.4pt; width: 79.15pt;\" valign=\"top\" width=\"106\">\n<p style=\"text-align: center;\" align=\"center\"><span style=\"font-family: 'Times New Roman',serif; font-size: 12pt;\">\u00a3990<\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td style=\"border-top: none; border: 1pt solid windowtext; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0cm 5.4pt; width: 231.05pt;\" valign=\"top\" width=\"308\"><span style=\"font-family: 'Times New Roman',serif; font-size: 12pt;\">July<br \/>\n20X5 \u2013 December 20X5<\/span><\/td>\n<td style=\"border-bottom: 1pt solid windowtext; border-left: none; border-right: 1pt solid windowtext; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0cm 5.4pt; width: 79.15pt;\" valign=\"top\" width=\"106\">\n<p style=\"text-align: center;\" align=\"center\"><span style=\"font-family: 'Times New Roman',serif; font-size: 12pt;\">\u00a0\u00a0 \u00a31,068<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><span style=\"font-family: 'Times New Roman',serif; font-size: 12pt;\">\u00a0<\/span><span style=\"font-family: 'Times New Roman',serif; font-size: 12pt; line-height: 115%; mso-bidi-font-family: 'Times New Roman'; mso-bidi-theme-font: minor-bidi;\">Calculate the value of the adjustment required for the rental income account as at 30 June 20X6 and show the journal entry needed for the relevant adjustment.<\/span><\/p>\n<p><b><span style=\"font-family: 'Times New Roman',serif; font-size: 14pt; line-height: 115%; mso-bidi-font-family: 'Times New Roman'; mso-bidi-theme-font: minor-bidi;\">Solution:<\/span><\/b><\/p>\n<table style=\"border-collapse: collapse; border: none; mso-border-alt: solid windowtext .5pt; mso-border-insideh: .5pt solid windowtext; mso-border-insidev: .5pt solid windowtext; mso-padding-alt: 0cm 5.4pt 0cm 5.4pt; mso-yfti-tbllook: 1184;\" border=\"1\" cellspacing=\"0\" cellpadding=\"0\">\n<tbody>\n<tr>\n<td style=\"border: 1pt solid windowtext; mso-border-alt: solid windowtext .5pt; padding: 0cm 5.4pt; width: 231.05pt;\" valign=\"top\" width=\"308\"><span style=\"font-family: 'Times New Roman',serif; font-size: 12pt;\">\u00a0<\/span><\/td>\n<td style=\"border-left: none; border: 1pt solid windowtext; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; padding: 0cm 5.4pt; width: 79.15pt;\" valign=\"top\" width=\"106\">\n<p style=\"text-align: center;\" align=\"center\"><span style=\"font-family: 'Times New Roman',serif; font-size: 12pt;\">\u00a0<\/span><\/p>\n<\/td>\n<td style=\"border-left: none; border: 1pt solid windowtext; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; padding: 0cm 5.4pt; width: 108.35pt;\" valign=\"top\" width=\"144\">\n<p style=\"text-align: center;\" align=\"center\"><span style=\"font-family: 'Times New Roman',serif; font-size: 12pt;\">Accrued income<\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td style=\"border-top: none; border: 1pt solid windowtext; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0cm 5.4pt; width: 231.05pt;\" valign=\"top\" width=\"308\"><span style=\"font-family: 'Times New Roman',serif; font-size: 12pt;\">July<br \/>\n20X5 \u2013 March 20X6<\/span><\/td>\n<td style=\"border-bottom: 1pt solid windowtext; border-left: none; border-right: 1pt solid windowtext; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0cm 5.4pt; width: 79.15pt;\" valign=\"top\" width=\"106\">\n<p style=\"text-align: center;\" align=\"center\"><span style=\"font-family: 'Times New Roman',serif; font-size: 12pt;\">\u00a3990<\/span><\/p>\n<\/td>\n<td style=\"border-bottom: 1pt solid windowtext; border-left: none; border-right: 1pt solid windowtext; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0cm 5.4pt; width: 108.35pt;\" valign=\"top\" width=\"144\">\n<p style=\"text-align: center;\" align=\"center\"><span style=\"font-family: 'Times New Roman',serif; font-size: 12pt;\">\u00a3990\/9&#215;3= \u00a3330<\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td style=\"border-top: none; border: 1pt solid windowtext; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0cm 5.4pt; width: 231.05pt;\" valign=\"top\" width=\"308\"><span style=\"font-family: 'Times New Roman',serif; font-size: 12pt;\">July<br \/>\n20X5 \u2013 December 20X5<\/span><\/td>\n<td style=\"border-bottom: 1pt solid windowtext; border-left: none; border-right: 1pt solid windowtext; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0cm 5.4pt; width: 79.15pt;\" valign=\"top\" width=\"106\">\n<p style=\"text-align: center;\" align=\"center\"><span style=\"font-family: 'Times New Roman',serif; font-size: 12pt;\">\u00a0\u00a0 \u00a31,068<\/span><\/p>\n<\/td>\n<td style=\"border-bottom: 1pt solid windowtext; border-left: none; border-right: 1pt solid windowtext; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0cm 5.4pt; width: 108.35pt;\" valign=\"top\" width=\"144\">\n<p style=\"text-align: center;\" align=\"center\"><span style=\"font-family: 'Times New Roman',serif; font-size: 12pt;\">\u00a31068\/6&#215;6=\u00a31068<\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td style=\"border-top: none; border: 1pt solid windowtext; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0cm 5.4pt; width: 231.05pt;\" valign=\"top\" width=\"308\"><span style=\"font-family: 'Times New Roman',serif; font-size: 12pt;\">Total<br \/>\naccrued income adjustment needed<\/span><\/td>\n<td style=\"border-bottom: 1pt solid windowtext; border-left: none; border-right: 1pt solid windowtext; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0cm 5.4pt; width: 79.15pt;\" valign=\"top\" width=\"106\">\n<p style=\"text-align: center;\" align=\"center\"><span style=\"font-family: 'Times New Roman',serif; font-size: 12pt;\">\u00a0<\/span><\/p>\n<\/td>\n<td style=\"border-bottom: 1pt solid windowtext; border-left: none; border-right: 1pt solid windowtext; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0cm 5.4pt; width: 108.35pt;\" valign=\"top\" width=\"144\">\n<p style=\"text-align: center;\" align=\"center\"><span style=\"font-family: 'Times New Roman',serif; font-size: 12pt;\">\u00a31068+\u00a3330=\u00a31398<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><span style=\"font-size: 14pt; line-height: 115%;\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/p>\n<table style=\"border-collapse: collapse; border: none; mso-border-alt: solid windowtext .5pt; mso-padding-alt: 0cm 5.4pt 0cm 5.4pt; mso-yfti-tbllook: 1184;\" border=\"1\" cellspacing=\"0\" cellpadding=\"0\">\n<tbody>\n<tr>\n<td style=\"border: 1pt solid windowtext; mso-border-alt: solid windowtext .5pt; padding: 0cm 5.4pt; width: 150.25pt;\" valign=\"top\" width=\"200\"><span style=\"font-family: 'Times New Roman',serif; font-size: 12pt; line-height: 115%;\">Account name<\/span><\/td>\n<td style=\"border-left: none; border: 1pt solid windowtext; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; padding: 0cm 5.4pt; width: 111.75pt;\" valign=\"top\" width=\"149\">\n<p style=\"tab-stops: 68.4pt; text-align: center;\" align=\"center\"><span style=\"font-family: 'Times New Roman',serif; font-size: 12pt; line-height: 115%;\">Amount<br \/>\n(\u00a3)<\/span><\/p>\n<\/td>\n<td style=\"border-left: none; border: 1pt solid windowtext; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; padding: 0cm 5.4pt; width: 127.6pt;\" valign=\"top\" width=\"170\">\n<p style=\"tab-stops: 68.4pt; text-align: center;\" align=\"center\"><span style=\"font-family: 'Times New Roman',serif; font-size: 12pt; line-height: 115%;\">Dr\/<br \/>\nCr<\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td style=\"border-top: none; border: 1pt solid windowtext; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0cm 5.4pt; width: 150.25pt;\" valign=\"top\" width=\"200\"><span style=\"font-family: 'Times New Roman',serif; font-size: 12pt; line-height: 115%;\">Accrued income<\/span><\/td>\n<td style=\"border-bottom: 1pt solid windowtext; border-left: none; border-right: 1pt solid windowtext; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0cm 5.4pt; width: 111.75pt;\" valign=\"top\" width=\"149\">\n<p style=\"tab-stops: 68.4pt; text-align: center;\" align=\"center\"><span style=\"font-family: 'Times New Roman',serif; font-size: 12pt; line-height: 115%;\">1,398<\/span><\/p>\n<\/td>\n<td style=\"border-bottom: 1pt solid windowtext; border-left: none; border-right: 1pt solid windowtext; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0cm 5.4pt; width: 127.6pt;\" valign=\"top\" width=\"170\">\n<p style=\"tab-stops: 68.4pt; text-align: center;\" align=\"center\"><span style=\"font-family: 'Times New Roman',serif; font-size: 12pt; line-height: 115%;\">Dr<\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td style=\"border-top: none; border: 1pt solid windowtext; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0cm 5.4pt; width: 150.25pt;\" valign=\"top\" width=\"200\"><span style=\"font-family: 'Times New Roman',serif; font-size: 12pt; line-height: 115%;\">Rental income<\/span><\/td>\n<td style=\"border-bottom: 1pt solid windowtext; border-left: none; border-right: 1pt solid windowtext; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0cm 5.4pt; width: 111.75pt;\" valign=\"top\" width=\"149\">\n<p style=\"tab-stops: 68.4pt; text-align: center;\" align=\"center\"><span style=\"font-family: 'Times New Roman',serif; font-size: 12pt; line-height: 115%;\">1,398<\/span><\/p>\n<\/td>\n<td style=\"border-bottom: 1pt solid windowtext; border-left: none; border-right: 1pt solid windowtext; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0cm 5.4pt; width: 127.6pt;\" valign=\"top\" width=\"170\">\n<p style=\"tab-stops: 68.4pt; text-align: center;\" align=\"center\"><span style=\"font-family: 'Times New Roman',serif; font-size: 12pt; line-height: 115%;\">Cr<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><a href=\"https:\/\/www.youtube.com\/watch?v=33FJ14tVbDM\">Accrued Income &#8211; YouTube<\/a><\/p>\n\n\n<p><a href=\"https:\/\/www.thetrainingplace.org\/aat-level-3\">AAT Level 3 | The Training Place<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Accrued income is a sundry income amount outstanding and yet to be received by the end of an accounting period, so has not been entered into the ledger accounts. In accounting for accrued income, the effect that needs to occur will be to increase the relevant income in an attempt to account for the total &#8230; <a class=\"read-more\" href=\"https:\/\/www.thetrainingplace.org\/blog\/2022\/02\/accrued-income\/\">Read More<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20,29,22],"tags":[],"class_list":["post-93","post","type-post","status-publish","format-standard","hentry","category-aat","category-financial-accounting-preparing-financial-statements","category-level-3"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Accrued Income - The Training Place Blog<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.thetrainingplace.org\/blog\/2022\/02\/accrued-income\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Accrued Income - The Training Place Blog\" \/>\n<meta property=\"og:description\" content=\"Accrued income is a sundry income amount outstanding and yet to be received by the end of an accounting period, so has not been entered into the ledger accounts. 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