accrued income / defferred revenue

Bosss,

If u recieve the amount today and it belongs to next 11 months, it is deferred revenue. Eg: If u recieve membership fees for ur club frm members, it is pertaining to his membership tenure and it is called deferred revenue

On the other hand, if the income is earned but not acually realized, it is called accrued income Eg: Interest on FD of 1 year. The Interst accrues daily, but becomes due at the end of 1st year and u recieve that.

good mahesh