What should be the treatment for adjusting accrued income and income in advance respectively in the credit side of profit and loss a/c? Added / deducted added / added deducted / deducted deducted / added?
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Accrued income means that we haven't received an income that we should receive but haven't received, therefore, that is an asset for the business. Thus, that is a relevant income for that particular year therefore we add the accrued amount to the to the credit side of the income statement (income).
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