Accountancy, asked by rshanmugap, 9 months ago

journal entry of interest accrued 300​

Answers

Answered by Anonymous
3

Answer:

Accrued Interest Income

A business earns interest on its money deposits of 1,000 but does receive the amount into its bank account until after the month end. As the income has been earned but not received, it needs to be accrued for in the month end accounts.

The double entry bookkeeping journal entry to show the accrued interest income is as follows:

Accrued Interest Income Journal Entry

The accounting records will show the following bookkeeping transaction entries to record the accrued interest income.

Accrued Interest Income Journal

Account Debit Credit

Accrued Interest Income 1,000

Interest Income 1,000

Total 1,000 1,000

Accrued Interest Income Journal Entry Explained

Debit

Interest income has been earned by the business but not received. As the amount is owed to the business it is recorded as a receivable called accrued interest income. The debit records the increase in the receivables in the balance sheet of the business.

Credit

The credit to the income statement account represents the interest income earned by the business.

Answered by sagarkag1947
7

Answer:

income ac dr

to accrued income

Similar questions