[Solve] Journal Entry For Accrued Income Example

 Welcome back to our blog today we are going to solve a journal entry for accrued income example which can help you understand the accrued income journal entry.

Now let's solve an example for accrued income entry:

Journal Entry For Accrued Income 

Example 1:- Company ABC provides consulting services and has completed a client's consulting project with a project fee of 10,000 but has yet to invoice for it.

Date	Account	Debit	Credit	Description
Dec 31, 2023	Accrued Income	10,000		To recognize income earned but not yet billed or received
Dec 31, 2023	Consulting Revenue		10,000	To record the earned revenue

• As you can see in the journal entry, accrued revenue represents income earned but not yet collected.

• We credit 10,000 into the consulting revenue account which  reflects the income earned during the period

Note:- Accruing income provides a more accurate picture of the company's financial health to investors and creditors.

Reversing the Accrued Income:

After receiving the amount journal entry will be :

Date	Account	Debit	Credit	Description
Jan 16, 2024	Accounts Receivable	10,000		To record the receivables from the client
Jan 16, 2024	Accrued Income		10,000	To reverse the accrued income no longer needed

Conclusion

I hope you guys understand how to make a journal entry for accrued income with an example so if you are an accounting student then you should read this post till the end