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

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...

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.

 

Thank u so much, priyanka and saurabh, u have resolved my query...