Adjustment entry - Accrued income

Accrued income :

In case, income has been earned but it has not been received till now, it is an accrued income. Accrued income is an asset because it is to be received in future,representing a person who will pay this amount it will be debited.

Example:
Rent ( receivable) is outstanding for the month of Nov rs 4000. The entry in such a case will be:

Accrued rent a/c.          4000
To rent a/c.                               4000.
(Being rent due but not yet received for the period)

Note:
Rent income a/c has been credited because of nominal nature of account . it is an income to be received in future . it will be credited.