interest accrued

Interest accrued refers to mercantile system of accounting -

suppose you have borrowed Rs. 5,00,000/-  for 5 years @ 10% interest, and interest is payable after completion of 5 years along with principle amount 

Then at the end of each financial you have to provide interest of Rs. 50,000/- per year in you books - which is accrued

at the end of 5th year accrued liability will become due as per terms of contract