26 March 2009
I will explain this with an example. Assume bank interest is payable every quarter on you Fixed Deposit from the date of your deposit. If you have made a deposit on 1st November then interest is payable on 1st March, 1st July,1st November etc. The interest for the year ended 31st March will show interest accrued for the period 1st March to 31st March but it is not due for payment as it will be paid only in July first for the quarter beginning 1st March to quarter ending 30th June. Hence in this case there is interest accrued but not due for a period of one month on balance sheet date. In a different time line if the interest has accrued and fallen due by 31st March but not paid then it is interest accrued and due. So, the meaning of accrue and due is that the amount which has fallen due for payment but not paid on balance sheet date.Trust you are clear.
27 March 2009
interest accrue as soon as time passes, but it becomes due as on specific date. for example salary accrues daily when you renders service , but it becomes due at the end of month or 7th (say) of next month.
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