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Out standing income is an income which have not been received yet eventhoug the event been incurred
ex: mr A is agree to pay the sum of 1000Rs every month as a commission , he actually paid for 10 months, still he required to pay 2 months at the year end eventhough he not paid yet. balance of rs 2000 becomes an out standing income(current asset)
cash a/c dr 8000
outstanding income a/c dr 2000
To Commission A/c 10000 Accrued income is an income which has been accumulated or accrued irrestpective to actual Receipt, which means event incurred but cash not yet received
Ex: Interest on Fixed deposits: on the day of investments fixed deposits a/c dr 10000
To Cash/Bank a/c 10000 end of the year Accrued interest 1000
tO income from Fixed Deposits 1000
(10%interest) Fixed deposit value at the end of year 11000
Wiki User
∙ 16y ago
Wiki User
∙ 11y agoprepaid income means liability for company and accrued income is asset of the company
prepaid income means company receiving income in advance
as well as accrued income means event is occur but we are not receiving income to company ,
Wiki User
∙ 9y agoOutstanding liabilities in accounting are expenses that have not been paid yet. Accrued liabilities are actually paid and accounted for.
Wiki User
∙ 9y agoAccrual income:
Sales incurred but amount is not received is accrued income
Accounts receivable:
When goods sold on credit to customers is cause of accounts receivable.
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