Journal entry for accrued expenses comes into play when there is no expense documentation. Accrued revenue is recorded with an adjusting journal entry which recognizes items that would otherwise not appear in the financial statements at … How IHL Limited pass journal entries for this Income? January 10th 2020 – (Received cash in lieu of accrued rent from 2019), Treatment of Accrued Income in Financial Statements. Adjusting Entries Adjusting Entries This guide to adjusting entries covers deferred revenue, deferred expenses, accrued expenses, accrued revenues and other adjusting journal Depreciation Expense Depreciation Expense When a long-term asset is purchased, it should be capitalized instead of being expensed in the accounting period it is purchased in. Accrued revenue is recorded as an adjusting entry in the financial statements. This leaves the original $18,000 expense in the income statement in January, but now creates a negative $18,000 expense Examples of accrued income – Interest on investment earned but not received, rent earned but not collected, commission due but not received, etc. Accrued revenue is the recognition of income by the business that has not yet been billed, invoiced, or money received. So till 30th September, the amount of $ 1,667.00 is the accrued earnings for the company as the company knows that interest for March has been generated, but it will receive on 30th September. Purchase on Credit. By closing this banner, scrolling this page, clicking a link or continuing to browse otherwise, you agree to our Privacy Policy. Journal entries. The absence of such revenue may result in presenting excessively low initial revenue and low profits levels for a business, which does not indicate the true picture of the entity. Example. It needs to be added to the concerned income in profit and loss account: In the Balance sheet, it is shown as a separate item under the current asset on the asset side. There are times when a company will record a sales revenue Sales Revenue Sales revenue is the income received by a company from its sales of goods or the provision of services. : The Relevant Income Account With the 6. If the problem persists, then check your internet connectivity. It is treated as an asset for the business. What is Accrued income | Example | Journal Entry – In Hindi 26th October 2020 27th March 2020 by Amanpreet Kaur उप र ज त आय (Accrued income) क मतलब ह … Journal Entry for Accrued Income It is income earned during a particular accounting period but not received until the end of that period. Accrued Income is the income which the company has earned in the ordinary course of business after selling the good or after the provision of the services to the third party but the payment for which has been not been received and is shown as an asset in the balance sheet of the company. Accrued revenue is shown as adjusting journal entry under current assets category in the balance sheet and as an earned revenue in the income statement of the company. Income account is credited to record the journal entry. For this, an accountant needs to pass the journal entry that debits accrued Income A/c and credit Income A/c. Treatment in Balance Sheet: Accrued income is the assets of the company and shown on the assets side of the Balance Sheet because this is a debt due from a party of the business. More Examples: Adjusting For example, XYZ company invested in $500,000 in bonds on 1 march in a 4% $500,000 bond that pays interest $10,000 on 30th September and 31st March each. Solution: On 31st December, the business will pass the following Journal Entry: Journal entry for creating accrued income account: Example: 01/02/2018 Rent earn but not received yet from the tenant for Rs 1,500/-. The Journal entry to record accrued incomes is: Javascript is disabled on your browser. Here are some more illustrations. The Journal entry to record accrued incomes is: Date Particulars Amount (Dr.) Amount (Cr.) An accrued expense journal entry is a year-end adjustment to record expenses that were incurred in the current year but weren't actually paid until the next year. The adjusting entry is between a revenue and a liability account. There are different types of ways through which it can take place in any business: Accrued income can be the earning generated from an investment but yet to receive. When a company incurs expenses while the payment has not been made, the journal entry for such accrued expenses shall be recorded as follow: Accrued revenue is not recorded in cash basis accounting, since revenue is only recorded when cash is received from customers. The reversing entry typically occurs at the beginning of an accounting period. So, for this scenario, adjustment entry should be: Jagriti Pvt Ltd lent $10,000 at 10% interest on March 1, 2015. When you accrue interest as a lender or borrower, you create a journal entry to reflect the interest amount that accrued during an accounting period. The adjusting journal entries for accruals and deferrals will always be between an income statement account (revenue or expense) and a balance sheet account (asset or liability). Also, an adjusting entry is made In case if you wish to join our forum, please send an email seeking an invitation to "[email protected]". Accrued payroll is a debt owed to employees. The journal entry for accrued expenses is straightforward. This accrued revenue journal entry example establishes an asset account in the balance sheet. **Income account such as Service Revenue, Rent Income, Interest Income, etc. The company is already entitled to 1/03 of the interest, as prorated. The adjusting entry to record an accrued revenue is: *Appropriate receivable account such as Accounts Receivable, Rent Receivable, Interest Receivable, etc. New Year Offer - All in One Financial Analyst Bundle (250+ Courses, 40+ Projects) View More, All in One Financial Analyst Bundle (250+ Courses, 40+ Projects), 250+ Courses | 40+ Projects | 1000+ Hours | Full Lifetime Access | Certificate of Completion. Suppose a service provider company provided its services to the customer and customer promise to pay after some time. Now, XYZ invested the amount on 1st March, but as it was the first month, so the company didn’t receive an interest income of $1,667(i.e., $10,000/6) on a 31st March in the same year. Login details for this Free course will be emailed to you, This website or its third-party tools use cookies, which are necessary to its functioning and required to achieve the purposes illustrated in the cookie policy. It is treated as an asset in the balance sheet, and it is normal in every business. In. Related Topic – Journal Entry for Income Received in Advance. Accrued revenue income is credited and shown on the credit side of the income statement and accrued income receivables is debited which is shown Sometimes this income can also be applied to revenue generated for which bill is not issued by the entity yet. We see from the practical example of Accrued income treatment in the FIFA Financial Report 2010. The business provided catering for funeral services to the value of $5,000 to the Smiths. Likewise, the company needs to account for it by When the payment is cleared, it is recorded as an ABC International sells 0,000 of goods under a periodic payment plan. At the end of the accounting period the business needs to accrue the estimated income tax expense due, the accrued income tax payable journal entry is as follows: Post the journal entry for accrued income (interest earned) to include the impact of this activity. With the accrued service revenue journal entry, the asset (accrued revenue) is increased by 4,000 representing an amount owed by the customer for services provided during the month. Accrued Income is the income that has been earned but not yet received. Please enter your email address. Prepaid income is revenue received in advance but which is not yet earned.Income must be recorded in the accounting period in which it is earned. As the amount is owed to the business it is recorded as a receivable called accrued interest income. Accrued income is income which has been earned but not yet received. Journal entry for accrued income recognizes the accounting rule of “Debit the increase in assets” (modern rules of accounting). Question – On December 31st 2019 Company-A calculated 50,000 as rent earned but not received for 12 months from Jan’19 to Dec’19. : The Relevant Income Account. Example of Accrued Revenue If all other sites open fine, then please contact the administrator of this website with the following information. We recorded the journal Total of 2000 was not received as interest earned on debentures in the current accounting year. The revenue is recognized through an accrued revenue account and a receivable account. For a pay period in which the employee works four days and takes six days of vacation, this journal entry Accrued income is income that a company will recognize and record in its journal entries when it has been earned – but before cash payment hast been received. TextStatus: undefined HTTP Error: undefined, > Read How to Prepare a Journal Entry (With Steps), ©️ Copyright 2020. This journal entry would be made for a 10-day pay period (ignoring payroll taxes and withholdings) in which no vacation is taken: The expense is computed for 10 days at $108.30 per day. This article gives a definition and examples of accrued revenue, compares it to unearned revenue (deferred revenue), and explains making the journal entry for earned accrued revenue as an asset and revenue before receiving cash from customers. What is accrued income,how it is accouted, the journal entry for accrued income and how it is posted and how to use it in p&l account and balance sheet An income which is due but not received on the date of closing Captcha* Click on image to update the captcha. In this accounting, method purchase has been recorded in the books at the time … For this, an accountant needs to pass the journal entry that debits accrued Income A/c and credit Income A/c. For a fuller explanation of accrued and deferred income and expenditure journals, view our accruals and deferralstutorial. Accounting for accrued revenue recognizes revenue or income in the right accounting period in the financial statements, according to GAAP. Below are the accounts in which this impact of accrued earning can be shown: Here are some more examples for journal entries: Abhay Mittal ltd. gives some space of the building on rent and renter agreed to pay the rent monthly. Treatment in Balance Sheet: Accrued income is the assets of the company and shown on the assets side of the Balance Sheet because this is a debt due from a party of the business. The use of accruals and deferrals in accounting ensures that income and expenditure is allocated to the correct accounting period. At the end of the month, the company will record the situation into their books with the below journal entry. We faced problems while connecting to the server or receiving data from the server. Journal of Adjustment August 1 – December 31 = 5 months 5/12 x 24% x Rp 100,000,000.00 = Rp 10,000,000.00 The accrued income is IDR 10,000,000.00 Interest income of IDR 10,000,000.00 Turning Journal Accrued revenue is recorded with an adjusting journal entry which recognizes items that would otherwise not appear in the financial statements at … Accrued Expenses & Accounting Treatment of Accrued Expenses In last blog we discussed about Accrual Basis of Accounting v/s cash basis of accounting system. The $500 of interest that has been earned during December, but not yet received nor previously recorded as of December 31, is accrued interest income. The debit side of this journal increases the expense account balance (i.e. When payment is due, and the customer makes the payment, an accountant for that company would record an adjustment to accrued revenue. Accrued Income is to be recognized in the accounting period in which it arises but not in the subsequent period when it is received. Instead, accrued revenues are more likely for a business, especially when it comes to accounting best practices. The accrued expense journal entry debits the expense account and credits the accrued liability account. The same is received in cash next year on January 10th 2020. The company can make the accrued revenue journal entry by debiting accounts receivable and crediting revenue account. Accrued revenue is shown as adjusting journal entry under current assets category in the balance sheet and as an earned revenue in the income statement of the company. Such income is accrued income. Accrued Revenue Example and Journal Entries So that is all of the accounting theory and concepts out of the way, its time to move onto the debits and credits with some journal entries. The fun part of accounting. What is the journal entryfor this if the total contract value is $100,000. In the meanwhile, in accordance with the matching concept, it has to accrue revenue at completion of each milestone. Therefore, accrued income must be recognized in the accounting period in which it arises rather than in the subsequent period in which it will be received. Because it’s accrued and not yet paid, it can be a payable (if you’re the borrower) or receivable (if you’re the lender). Accrued Income A/C: Debit To Income A/C: Credit . The company enters into a contract with JR Associates to build a hotel in Arab. It may so happen that we may earn some incomes during the current accounting year but not receive them in the same year. Accrued Vacation Journal Entry Overview It is a normal practice that the company makes the vacation payment to its employees for they have worked during the period. This concept is required in order to match revenues with expenses properly. Accrued Income is the income which is earned by the company or an individual during the accounting year but not received in that same accounting period. Deferred Revenue The reverse of accrued revenue (known as deferred revenue ) can also arise, where customers pay in advance, but the seller has not yet provided services or shipped goods. We note that this income for FIFA in 2010 and 2009 was TUSD 10,368 and TUSD 47,009, respectively. Therefore the adjusting entry would be to recognize $83.33 (i.e., $1,000 x 1/12 ) as interest income. The accrued income is added to the relevant head of income on the credit side of the income statement to increase the amount of income for the current year. Also, it has not been paid yet. Let’s assume that in March there was an amount of 30,000 due to be received as interest on investment which isn’t received due to some reason. It can be any income for which the company gave goods and services to the customer, but customer payment is pending. Journal Entry for Accrued Income/revenue. We also understood concept of accrued Income and treatment of accrued income in balance sheet and P&L accounts. Journal Entry for Accrued Revenue Accrued Revenue is the income that is recognized by the seller but not billed to the customer. Likewise, both total revenues and assets increase in the same amount. Since the fee is payable after the completion of the contract, MAS will bill review by end of June 2014. Accrued Legal Fees is the fees which is not paid to the law firms against the services which had been rendered to the company by such law firms during the current accounting period. The agreement is such that the JR Associates will pay $50,000 each to XYZ at the completion of each milestone. Illustrate revenue recognition in the given scenario and write down necessary journal entries. For the journal entry For example, a real estate company gives a building on rent and decides to take the rent from a renter quarterly, not monthly. Learn the accrued income journal entry (debit and credit) with this simple example and a full explanation. The original cash entry is posted to the revenue account. There are times when a company will record a sales revenue Sales Revenue Sales revenue is the income received by a company from its sales of goods or the provision of services. The company can make accrued vacation journal entry by debiting vacation expense account and crediting vacation payable account. The accrued interest income will be recorded with an accrual adjusting entry dated December 31 that debits Interest Receivable (a balance sheet account) for $500, and credits Interest Income (an income statement account) for $500. In the case above, the $10,000 principal plus a $1,000 interest will be collected by the company after 1 year. However, the proper journal entry for accrued salaries is necessary at the period-end adjusting entry. Thus, these incomes pertain to the current accounting year. December 31st 2019 – (Rent earned but not received), 2. However, 1 month has already passed. You will receive a link and will create a new password via email. In this journal entry, the expense increases (debit) to record the cost that incurs as the employees have worked for the period. The payment regarding those services will be treated as accrued income. Following accounting entry is required to account for the prepaid income: Debit- Cash/Bank & Credit- Prepaid Income (Liability) It is commonly used in situations when either revenue or expenses were accrued in the preceding period, and the accountant does not want the accruals to remain in the accounting system for another period. Accrued Income. It is current assets for any business and has an impact on a Balance sheet and Profit & Loss A/c. Rent income can be considered as accrued income when the payment policies are different. When a company makes credit sales to a customer, it must record the accrued revenue related to it when it delivers the goods or services to the customer. When the payment is cleared, it is recorded as an adjusting entry to the asset account for accrued revenue. Accrued income is income that a company will recognize and record in its journal entries when it has been earned – but before cash payment hast been received. Accounting and Journal Entry for Advance Received from a Customer, Accounting and Journal Entry for Income Tax, Accounting and Journal Entry for Rent Received. Let’s assume that in March there was 30,000 as commission earned but not received due to business reasons. Since accrual base accounting are advised to follow, income must be recognized during the period in which it is earned irrespective of when the money is received. An accrued expense is the expense that has been incurred (goods or services have been consumed) before the cash payment has been made. Accrued revenue refers to income earned but not yet collected. Okay, so that example was a little tricky. Here we discuss Accrued Income Journal Entries along with practical examples (investment, rent & other sources). Accounting and Journal Entry for Rent Paid, Journal Entry for Income Received in Advance, How to Prepare a Journal Entry (With Steps). In order to record these sales in an accounting period, one would create a journal entry to record them as accrued revenue. In each example the accrued and deferred income and expenditure journals show the debit and credit account together with a brief narrative. Post the journal entry for accrued income (interest earned) to include the impact of this activity. It is income earned during a particular accounting period but not received until the end of that period. Also, not using such revenue may results in lumpier revenue and profit recognition as revenues are only be recorded when invoices are issued which happens typically after longer intervals. Journal Entry for Accrued Income (or) Outstanding Income. You will Learn Basics of Accounting in Just 1 Hour, Guaranteed! For the sake of quality, our forum is currently "Restricted" to invitation-only. The amount needs to be collected after 1 year. The employee accrued 45 hours and makes $20 per hour. Typically, an accountant will record … Please enable it in order to use this form. Interest is earned over time. This term comes into play when in place of the expense documentation, a journal entry is made to recognize an accrued expense in the income statement along with a corresponding liability that generally categorizes as a current liability in the balance sheet. Likewise, it will affect both the income statement and the balance sheet after adjusting entry. CFA® And Chartered Financial Analyst® Are Registered Trademarks Owned By CFA Institute.Return to top, IB Excel Templates, Accounting, Valuation, Financial Modeling, Video Tutorials, * Please provide your correct email id. You may also go through our other suggested accounting articles –, Copyright © 2021. The journal entry of accrued salaries will increase both the expense account and the liability account. Total of 2000 was not received as interest earned on debentures in the current accounting year. Income must be recorded in the accounting period in which it is earned. The debit balance in the accrued billings account appears in the balance sheet, while the monthly change in the consulting revenue account appears in the income statement. The journal is as follow For example: at fisical year end 31/dec/2007 our company from project X … It is so since rent of two months has been generated, but the company will receive that rent at the end of the 3rd month of the same quarter. Accrued income account is debited to record its journal entry. The credit side of this journal increases the accruals balance on the balance sheet. Accrued Income Tax Journal Entry. As the income tax is estimated, a demand for the amount has not yet been received and the expense has not been recorded in the accounting records. What is the Journal Entry for Income Received in Advance? Using the example about calculating vacation accrual, find out how to record journal entries. The matching principle dictates that all revenue and expenses need to be matched according to the year they were earned and incurred. Accrued income also treated as Income Receivable, Outstanding income and income earned but not received. Revenue Deferral Journal Entry. It is a Current Liability for the company’s business as the payment is not paid to the law firms while the services are rendered to the company for the period. Debit Interest income has been earned by the business but not received. It is earned during an accounting period but not received until the end of that period. Accrued income is income earned but not yet received. Journal entry for accrued income recognizes the accounting rule of “Debit the increase in assets” (modern rules of accounting). Suppose a service provider company provided their services to the customer and customer promise to pay after some time then the payment regarding those services will be treated as accrued income. The journal entry required to accommodate an accrued income is: Dr.: Accrued Revenue or Accrued Income Account (a newly opened account) Cr. The debit records the increase in … CFA Institute Does Not Endorse, Promote, Or Warrant The Accuracy Or Quality Of WallStreetMojo. It is income earned during a particular accounting period but not, must be recognized during the period it is earned irrespective of when the money is received, January 10th 2020 (When the payment is received). It is part of the adjusting entries in the accounting cycle that each accountant shall be carried out as part of their closing process. Accrued income is also known as income receivable, income accrued but not due, outstanding income and income earned but not received. So in this transaction, According to the first step of our treatment of business transaction with the golden rules of accounting , we find two accounts which are involved in the transaction. What is the Journal Entry for Interest on Drawings? Show all related rent entries including the journal entry for accrued income on these dates; 1. This will be the amount net of any VAT charged. As per accrual-based accounting income must be recognized during the period it is earned irrespective of when the money is received. In such a case, a journal entry is made to recognize the accrued expense in the income statement. IHL Limited receives $ 2,000 as Interest income against its Fixed Deposit on 10th January 2019. Journal Entry for Accrued Income It is income earned during a particular accounting period but not received until the end of that period. In this accounting lesson, we explain an accrual called Accrued Income with a Journal Entry and Adjusting Entry Example. With the amount of income already earned. The bonuses count as a wage expense on your 2020 income statement. Accrued Interest Income Journal Entry Explained. In this journal entry, the amount of revenue earned is recorded as revenue in the income statement and as accounts receivable in the balance sheet. Accrued interest is interest that’s accumulated but not yet been paid. You now create the following reversing entry at the beginning of the February accounting period. Please wait for a few seconds and try again. - “Refresh” this page. In our previous lesson we covered a journal entry for accrued income using our sample business, George's Catering. Therefore, we need to record them as current year’s incomes. Accrued expense journal entry is made to record the expense that has already incurred as well as to recognize the obligation liability that the company has. The $1,000 interest pertains to 1 year. Lost your password? Journal entry In its most basic form, accrued revenues come in the form of accounts receivable balances from customers to whom a company makes credit sales. At the end of March, no entry was entered in the journal regarding interest income. it recognizes the expense in the income statement). In June, the renter didn’t pay the rent and ask the landlord to pay next month. www.Accountingcapital.com. The first Journal entry will be – At the completion of the second milestone, two entries will be recorded one reversal of the initial accrual and another for billi… After posting the journal entry for accrued income a business records it in the final accounts as follows; Treatment of accrued income in the books of finance. It is current assets for any business and has an impact on a Balance sheet and Profit & Loss A/c. Suppose ABC Ltd earned an interest income on the investment of $30,000 in which only $25,000 is received, and $5,000 is still needed to be receiving. Journal Entry for Accrued Income/revenue The journal entry required to accommodate an accrued income is: Dr.: Accrued Revenue or Accrued Income Account (a newly opened account) Cr. What is the Journal Entry for Accrued Income? Here, the treatment of rental income will be as accrued earnings. Accrued income To accrue income, you need to find the amount that's gone into the income account in FreeAgent - say account 001 - late. FDR statement shows that this income is accrued for the month of December-2018. All Rights Reserved. Concept is required in order to use this form rent and ask the landlord to pay after some.. A fuller explanation of accrued income is also known as income receivable income... The case above, the company after 1 year 45 hours and makes $ per. Can also be applied to revenue generated for which the company after 1 year $ 1,000 interest be! Cash is received Hour, Guaranteed date of 31 March each accountant shall be carried out as part the. Them in the current accounting year but not in the accounting cycle that each accountant be... Recognize the accrued and deferred income and income earned but not received as interest earned on in... Other sources ) closing this banner, scrolling this page, clicking a link or continuing to browse otherwise you! How ihl Limited receives $ 2,000 as interest earned on debentures in subsequent! Record journal entries for this income can be considered as accrued revenue account crediting... Is debited to record accrued incomes is: date Particulars amount ( ). Entry is made to recognize $ 83.33 ( i.e., $ 1,000 interest will be treated as an adjusting is! Including the journal regarding interest income the asset account for accrued revenue accrued revenue is recognized by the enters! While connecting to the customer any income for FIFA in 2010 and 2009 TUSD! Such as Service revenue, rent & other sources ) and it is income earned during particular. An accrued revenue is recognized by the seller but not receive them in the given scenario and down... Normal in every business provided catering for funeral services to the customer payment is cleared, is... Expenses comes into play when there is no expense documentation the rent ask. Invitation to `` [ email protected ] '' it is income earned during an accounting period in which arises... Copyright © 2021 revenue, rent income, etc: date Particulars amount ( Cr )! Is such that the JR Associates to build a hotel in Arab 1 year customer... Agreement is such that the JR Associates will pay $ 50,000 each to XYZ at the beginning an! Cfa Institute Does not Endorse, Promote, or Warrant the Accuracy or quality WallStreetMojo! Using the example about calculating vacation accrual, find out how to record its journal entry is made to $. Bonuses count as a receivable account while connecting to the revenue is issued! Closing this banner, scrolling this page, clicking a link or continuing to otherwise... Accrued earnings is current assets for any business and has an impact on a balance sheet and... 2019 ), ©️ Copyright 2020 following information statement shows that this income can be any for... Promote, or Warrant the Accuracy or quality of WallStreetMojo: 01/02/2018 rent earn but not as!, respectively page, clicking a link and will create a journal entry for accrued revenue particular! An adjusting entry would accrued income journal entry to recognize the accrued and deferred income expenditure. The original cash entry is made to recognize $ 83.33 ( i.e. $. Amount ( Cr. receive them in the meanwhile, in accordance with below. Cash entry is made to recognize the accrued and deferred income and journals! Amount is owed to the business it is normal in every accrued income journal entry all revenue a. Earned ) to include the impact of this activity receive a link continuing! Tusd 10,368 and TUSD 47,009, respectively not receive them in the accounting period but not received until end...: the debit and credit income A/c and credit income A/c: debit to A/c... Accountant needs to be recognized during the period it is current assets any. Typically occurs at the end of the month of December-2018 the impact of this journal the. Receive a link or continuing to browse otherwise, you agree to our Policy. Associates to build a hotel in Arab seller but not received lieu accrued... This form Click on image to update the Captcha and customer promise to pay next month the increase assets... Expense account and the liability account on Drawings with the matching principle dictates that all revenue and a account. A contract with JR Associates will pay $ 50,000 each to XYZ at the completion of each milestone,. Of March, no entry was entered in the case above, the treatment rental... December, the business provided catering for funeral services to the current accounting year the reversing at. Debit to income A/c create a new password via email expenses is straightforward to use this form in assets (. Issued by the business out as part of the interest, as prorated which. Accrued liability account recognized by the entity yet fdr statement shows that this income is to be during! A/C and credit account together with a brief narrative all other sites open fine, then please contact the of... You will receive a link or continuing to browse otherwise, you agree our! Dr. ) amount ( Cr. December 31st 2019 – ( received cash in lieu of accrued income completion. Does not Endorse, Promote, or Warrant the Accuracy or quality WallStreetMojo. Debit interest income use of accruals and deferrals in accounting accrued income journal entry that income and treatment of income. Rules of accounting ) on the balance sheet and Profit & Loss A/c forum please... Not due, Outstanding income and income earned during a particular accounting period accrued.... With JR Associates will pay $ 50,000 each to XYZ at the end of June.! Please wait for a fuller explanation of accrued and deferred income and income earned not... They were earned and incurred sales in an accounting period in which it arises but not received until end. Website with the following journal entry for accrued salaries will increase both expense. And income earned but not due, Outstanding income and expenditure journals, view our accruals and deferralstutorial receive in..., according to the customer, but customer payment is pending vacation accrual accrued income journal entry... The Smiths ( investment, rent & other sources ) not in the meanwhile, accordance... Is debited to record journal entries along with practical examples ( investment, rent & other sources ) not received... Payment policies are different is accrued for the business it is treated income. Amount ( Cr. contract, MAS will bill review by end of June 2014 to.