14 February 2010
To understand the difference between the two, please refer :
1. Accrued But Not Due
When you put one FDR into bank for one year on 31 01 2010; then interest accrues for 2 months for the financial year ending on 31 03 2010. But interest does not become due because right now you cann't claim from the bank. It will be due only on maturity.
14 February 2010
I would like to explain it with example, it might be helpful for you to understand difference between due and accrue.
At the year end or beginning, generally this problem came with us.
Telephone bills
calls made by us till 31st march ..... has accured but we have nt recd the bill for that. Bill for month of march will be received in the month of april and also some due date is dere to pay.
so vl be classified as accured but not due
FDRs
In case of FDRs, maturity amount will be recd on maturity date (i.e. due date) but interest on principal amount of FDRs accrued day by day.
I think frm above two example it would be more clear to u
CAclubindia
