Financial Statements - II
Chapter 10: Financial Statements - II · ACCOUNTANCY · EN medium
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The amount of accrued income will be added to the related income in the profit and loss account and the new account of accrued income will appear on the asset side of the balance sheet. Let us, for example, assume that Ankit was giving a little help to a fellow businessman by introducing few parties to him on commission for this service. In the trial balance of Ankit you will notice an item of commission received amounting to Rs. , . Assume that the commission amounting to Rs. , was still receivable from the fellow businessman. This implies that income from commission earned during - is Rs. , (Rs. , + Rs.
📖 Accounts 10 (1) · Page 8
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The amount of accrued income will be added to the related income in the profit and loss account and the new account of accrued income will appear on the asset side of the balance sheet. Let us, for example, assume that Ankit was giving a little help to a fellow businessman by introducing few parties to him on commission for this service. In the trial balance of Ankit you will notice an item of commission received amounting to Rs. , .
Assume that the commission amounting to Rs. , was still receivable from the fellow businessman. This implies that income from commission earned during - is Rs. , (Rs.
, + Rs. , ) Ankit needs to record an adjustment entry to give effect to the accrued The account of accrued income will be recorded in trading and profit and
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