Bookkeeping for Accrued Income

Is this method of bookkeeping for Accrued Income OK?

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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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By mrme89
18th May 2017 16:25

A suspense account is intended to be a temporary account.

If there is a balance sheet code for accrued income, then use it.

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By Southwestbeancounter
18th May 2017 18:38

Surely the closing balance of accrued income at the balance sheet date would be £1,000 not £200?

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Replying to Southwestbeancounter:
By johngroganjga
18th May 2017 20:00

My thoughts exactly!

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By NeilRH
19th May 2017 08:56

I think they are forgetting the b/f £800 DR.

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Replying to NeilRH:
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By WestBest
19th May 2017 12:09

NeilRH wrote:

I think they are forgetting the b/f £800 DR.

Yes, sorry I meant to say £1000 (£200+£800).

My closing journals on Sage are using the sales code 4000 and accrued income 1104.

The previous accountants didn't use 4000 they put it to a suspense account 9998 Cr and the Dr 1104. I don't see them using the 4000 code anywhere but their sales figures are correct I'm not doubting their figures, just their logic in arriving at them.

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