Question

What will be the treatment of "accrued income" if appearing in the Trial Balance.

• A. It will be shown on the assets side as current assets in the balance sheet
• B. It will be shown on the liabilities side as current liability in the balance sheet
• C. It will be shown on the debit side of trading account as an expense
• D. It will be shown on the credit side of profit and loss account as an income

Answer 1

The correct option is A It will be shown on the assets side as current assets in the balance sheet

Accrued Income is treated as an asset for the company , hence it will be shown in Asset Side in the Balance Sheet.