Question

Interest accrued but not due meaning

Answer 1

Answer:

  "Interest accrued but not due"

The above statement says that the amount of interest calculated on the principal amount of money in the period of computation but the payee has still available time to pay the installment.

Answer 2

It is the obligatory amount which needs to be paid but is not yet in the books.

• It is the Interest accumulated and is recorded in the books, but it is still undue for payment.
• Thus, it is the interest on the investment that has been generated, but it is to be paid out currently. It should be included under the heading current liabilities.
• It is a corporate duty that must be fulfilled within a 12-month span, making it a current liability.