Income accurred but not due

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CA. Akalesh Singh Rawat (Querist)
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10 May 2014 Company is providing security agency service to various customers. The company raising its invoice of service provided to customer after completion of month services ie. service provide during the month of April is being billed in 1st May and book the revenue in 1st may in account book. However, all the expenses related to the month is being booked in last day of month says 30th April in this case.

The question is come in place at last month of financial year booking where at the end of financial year, company has booked March month expenses itself in March month as per running practice but income is booking in 1st april (Next financial year).

Company want to book the income on 31st march itself so that full income should be charged in P&L against the expenses charged for the period.
March service month bill has been served to client on 1st April date.
Can anyone suggest what accounting entry company supposed be passed. Can the bill value of March service month may debited in “Income accrued but not due” ledger.

Rupesh Jain

Rupesh Jain (Expert)
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10 May 2014 YOU CAN PASS THE JOURNAL ENTRY OF INCOME OF MARCH,BILL RAISED IN APRIL FIRST WEEK

JOURNAL ENTRY
IN 31.3.2

INCOME ACCURED BUT NOT DUE A/C
TO SERVICE CHARGED A/C

DEBTORS A/C
TO INCOME ACCURED BUT NOT DUE A/C
TO SERVICE TAX PAYABLE A/C

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