what is difference between income accrued and income
receivable?
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Answer Posted / h.r. sreepada bhagi
Indeed there is difference between the two. Income accrued
refers to the income attributable a period which is
receivable in future but it may or may not be due for
receipt as on the date of closing the accounts.
However, Income receivable refers to those income which are
accrued as well as become due for receipt as on the date of
closing the accounts.
For example, as of 31.03.10 A company has $5,00,000/-
accrued income, but out of this due date for $1,00,000/- is
31.03.10 and the remaining amount is receivable at the end
of next 4 months equally.
As on 31.03.10, $5,00,000/- is accrued income and
$1,00,000/- is receivable. "All receivables, as on a
particular date are accrued, but not necessarily be
receivable" - This because of credit period or future due date.
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