Simple point in accounts but having trouble, plz help...


Siddharth Singh (CA-Final)     17 July 2013

Siddharth Singh
CA-Final 
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This query should be asked in 11th or 12th but i believe in Ask, Ask and Ask. So here is my query. What is the difference between Accrued and Outstanding? Plz explain it with the support of some examples, if possible. Thank you.

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~Priyanka MS~ (-)     17 July 2013

~Priyanka MS~
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Accrued in short means, all expenses paid or payable and incomes received or receivable.Outstanding means anything that is due or yet to be received. e.g, Out standing income is an income which have not been received yet the event been incurred. ex: mr A is agree to pay the sum of 1000Rs every month as a commission , he actually paid for 10 months, still he required to pay 2 months at the year end eventhough he not paid yet. balance of rs 2000 becomes an out standing income(current asset). Hope i answered ur question...

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Saurabh Maheshwari (B.com,ACA)     17 July 2013

Saurabh Maheshwari
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Assume,

Debenture Int is payable half yearly say on -June 30 and  Dec 31.

Say I have debentures of Rs. 1 lacs and deb int is 8% p.a...My FY is April to March,31

So Interest paybale for the period of Jan to March, 2014 is actaullay accrued to me....so it is my accued income ....but it is not outstanding income because company is lible to pay 6 months interest i.e. on June 30 only....

So here my Accrued Interst on March 31,2014 = 1 lacs*8%*3/12 = Rs. 2,000.

 

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Siddharth Singh (CA-Final)     17 July 2013

Siddharth Singh
CA-Final 
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Thank u so much, priyanka and saurabh, u have resolved my query...


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