I would like to check my bookkeeping for "Accrued Income".
I know some bookeepers use the suspense account, but I don't I do it like this:
Dr Cr
Accrued Income for year 1000
Sales 1000
At the same time i back out the journal entry I did for last year
Accrued income last year 800
Sales 800
This will arrive at the correct revenue figure for the year and in the above example their would be a balance of accrued income of £200 on the Bal Sheet.
I would be interested to know how you account for "Accrued Income" using the "Suspense Account"?
Thank you
Replies (5)
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A suspense account is intended to be a temporary account.
If there is a balance sheet code for accrued income, then use it.
Surely the closing balance of accrued income at the balance sheet date would be £1,000 not £200?