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Outstanding Income & Advance income - Will it be shown in
P&L..? In b/s which side, it will be shown..?
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Answer / suman.g
In p&l A/c only "Outstanding Income" will be effected. i.e credited to P&L A/c.
Advance income will not be shown since it is relevant to the future period.
In Balance Sheet
Outstanding income will be shown as an Asset
Advance Income will be shown as a liability.
| Is This Answer Correct ? | 23 Yes | 9 No |
Answer / h.r. sreepada bhagi
First of all there is no terminology as Outstanding Income.
It's Accrued income, meaning, income relation to a financial
period but not yet received as on the date of Balance Sheet.
It's shown on the Asset side (Application of Funds in
Vertical Format) of the Balance Sheet.
Advance Income refers to money received in advance in a
financial year which relates to a future period. This is
shown on the Liability of the Balance Sheet (Included in
Current Liabilities & deducted from Current Assets in
Vertical Format.
In case of Accrued income should be taken in to Profit &
Loss A/c of the year to which it relates. Advance Income
should be shown in the Profit & Loss A/c of a future
financial period, to which it relates.
| Is This Answer Correct ? | 11 Yes | 3 No |
Answer / rakeshking
p/l a/c
advance income credit side
b/s
advance income liability side
outstanding income asset side
| Is This Answer Correct ? | 16 Yes | 9 No |
Answer / kuoc maluac
. Individual companies can also accrue income without
actually receiving it, which is the basis of the accrual
accounting system.
| Is This Answer Correct ? | 5 Yes | 0 No |
Answer / sachin pathak
outstanding income will show in credit side of the p&l
account and the advance income will shown in the assets
side in the balance sheet of the current year
| Is This Answer Correct ? | 4 Yes | 1 No |
Answer / devendra
Outstading income & Advance income will not reflectin P&L
A/c.
We will show Advance income on Assets.
We will show outstading income on Liabilities.
| Is This Answer Correct ? | 5 Yes | 3 No |
Answer / sameer
1. outstanding income = accrued income ( right defination )= income earned but cash not received. eg rent not received by the end of the book closure or accounting period, Journal entry.Rent (income) will go on cr. side of P&l and Rent receivable will go to B/S under Current asset.
rent receivable Dr.
To rent (income) a/c
When we receive rent in cash the entry will be
Cash a/c Dr.
To Rent receivable.
2. Advance Income = defered Revenue = cash received in advance but goods and services not sold/ provided eg
rent received in advance. rent advance a/c will go to current liability side of B/s
cash a/c dr
To rent adv a/c
When rent is charged
rent adv a/c dr
To rent (income) a/c
the amount by which rent is charged will go to p&l and rest of the blce will remain in rent adv will remain in b/s
| Is This Answer Correct ? | 1 Yes | 0 No |
Answer / arooj
outstanding income means accrued income that is the income
which have not been received yet even though the event been
incurred so it is our accounts receivable and so
asset
advance income is the income received in advance n event
not incuurred as yet so till we dont provide services for
which we have received income its our liability
| Is This Answer Correct ? | 1 Yes | 1 No |
Answer / kiran
Outstanding income is nothing accrued income which is earned but not yet recieved,
Advance income which is earned prior to the service/goods sold.
| Is This Answer Correct ? | 0 Yes | 0 No |
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