Hello, the name of the next adjustment is Accrued Income.
What is Accrued Income?
For this, we will have to walk on the pad again and we will
have to understand things like what, why and how.
Everyone will start writing along with me without any delay.
Please start writing down.
Keep writing together.
Later, things will get together.
Write together.
What is the name of this Accrued Income?
This word confuses you a lot.
Accrued, Outstanding, Due, Prepaid
In all these adjustments, all your tensions will be
resolved.
Today, we are putting the number of Accrued Income.
In the same way, we will put everyone's number one by one.
Today, Accrued Income.
How does Goldberg say?
You are next.
Say it with Accrued Income.
You are next.
Look, friend.
Who will be one of you?
Tell me quickly, whose name should I take?
This is Devesh Babu.
Someone has it, if not us.
Devesh Babu, right?
So, Devesh Babu has joined an MNC.
Great company.
He did a very good course.
Learned very good skill courses and joined an MNC.
Great, top level.
Should I tell you his salary today?
Don't get scared after hearing his salary.
His salary is Rs. 1 Lakh per month.
Rs. 1 Lakh per month.
Okay.
Now, sir, it is like this.
He has joined on 1st April, 2023.
On 1st April, 2023.
Will you make him sit on a chair and say, take this Rs.
1 Lakh.
Now, keep working for a month.
First, he will have to work for a month.
Then, he will get his salary.
What does the public say?
First, work.
Then, price.
You don't get advance in a job.
If you ask for that in an emergency case, it is a different
story.
So, it is decided in the agreement that you have to work
for a month.
And then, from 4th or 5th of next month, you will get your
salary.
When will he get his salary on 1st April? 5th of May.
5th of May, June.
5th of June, July.
July, August, August, December, December,
October, October, November, November, December,
January, January, February, February, March.
And, the month of March, 2023, the month of March, 2023,
sorry, the month of March, 2024, is the last month of this
year.
March, 2024 is the last month of this year.
When will he get his salary? 5th of April, 2024.
I will try to present it to you.
I will make a year in front of you.
Let me draw the year.
Let me draw the line straight.
Straight, straight, straight, straight, straight.
Here, it is done.
How many months are there in the year? 12.
Make it 7.
Here.
April, May, June, July, August, September,
October, November, December, January, February and March
Sir, I am talking about the last month
This is the last month of the last month
The month of March 2024
Because where does the year start? 1st April 2023
So where will it end?
In March 2024
The last date of March 2024 will be 31st March 2024
Will the company give the salary of March 2024 to 31st
March?
No Our policy is to come on 5th May 2024
And leave with the cheque
Sorry, leave
I will come at night
I will take you
I will show you the film
I will take you for a ride
Come on 5th May
Take the cheque
Ok Friend But This salary
Is it the income of the elder brother or not?
Tell me the truth
Is it the source of income for him?
Yes Is it the source of income for him?
Yes This salary of March 2024
Which financial year is it related to?
Financial year 2023-2024
When did it start? 1st April 2023
And when will it end? 31st March 2024
March 2024 also comes in 2023-2024
So the salary of March 2024 is also the income of 23-24
years
Financial year is the income of 23-24 years
So the elder brother
Who will make his profit and loss account
Devesh Babu
What does he do in it?
On one side, he writes all the incomes
And on one side, he writes all the expenses
So when he will write his income
On the income side
So friends
How much salary has he got?
Tell me this first
Sir, he has got a salary of 11 months
According to 1 lakh rupees
How much salary has he got? 11 lakh
He will write one
Now do you know what Devesh Babu is saying?
He is saying that my total income salary is 11 lakh
Because how much did I get in 23-24 years? 11 lakh
I joined on 1st April 2023
How much did I get in 23-24 years? 11 lakh
The 1 lakh rupees of March
I did not get it in 23-24 years
I got it on 5th May 2024
And in which year does 5th May 2024 fall?
Financial year 2024-2025
In which year does 5th May 2024 fall?
Financial year 2024-2025
So he is saying
I am making this P&L of 23-24 years
And the money I am getting in 24-25 years
I will write it in P&L of 24-25 years
Why should I write in P&L of 23-24 years?
Devesh Babu is saying this
Now do you know who came in the dream of Devesh Babu at
night?
In the dream of Devesh Babu
The father of accounts came at night
Luca Di Pacioli
He came in the dream and explained to Devesh Babu
What? He said
Son, we don't do accounting on the basis of cash
That we will accept the income when we get the money
You see
From which year is that income related?
Brother, when did you work hard?
In 23-24 years
When did you go to the office?
When was the month of March? 23-24 years
When you went and worked for 31 days in the month of March
When you were earning that income
How does the income go?
By going to the office and working
By giving attendance
So what was that month?
That was 23-24 years
You are getting it later, leave it
From which year is that salary related?
From 23-24 years
That's why
Take this salary in the P&L account of 23-24 years
Luca Di Pacioli says
Dear children
Don't see when you got the money
When did you earn?
When did you work hard?
When did you perform services?
In that year
We will take that income
Everyone clear?
Okay So this Rs.
1 lakh will also be added to the salary
And the total salary income
How much will be shown in 23-24 years?
Rs. 12 lakhs
And this Rs.
1 lakh
Do you know what is said in Hindi?
I have earned money
I have worked hard
But it has not been received yet
I have earned money
I have worked hard
I have fulfilled my responsibility
But it has not been received yet
It has not been received yet
If we speak in English
If we speak in accounts
I will write on the next page
Income earned
E-A-R-N-E-D I have earned
I have fulfilled my responsibility
I have worked hard
I have not received the money yet
You will get it after a few days
Income earned but not received
What date are you making P&L? 31st March 2024
So what is the status of this Rs.
1 lakh on 31st March 2024?
You have fulfilled your responsibility
Income earned
But you have to get the money too
You will get it after 5 days
Income earned but not received
Is it done?
There is another name for this
Income due but not received
There is another name for this
Accrued income
There is another name for this
Accrued income
You have earned money
You have worked hard
You do not have the right to ask now
You will get the right after 5 days
You will get it after 5 days
Ok Income accrued
This is called
Tell me what will be the journal entry of this?
Tell me the journal entry of this
In whose books?
In Devesh Babu's books
What will be the journal entry of this?
In Devesh Babu's books
I have not received the money yet
How will the bank get debited?
I have not received the money yet
How will the bank get debited?
Tell me this
Have you heard the rule?
What would you have done if you had received the money?
What would you have done if you had received the salary?
Bank account debit
To salary account
Devesh Babu
If he had received the money in his bank
He would have debited the bank
And salary is his income
And what is the rule?
Credit all income and gain
That is why he would have credited the salary
Since he has not received the money
Bank will not come
But salary will come
Because Luka Ji has said
Income is two salaries
If you get money then bank comes in debit
If not then what will come in debit
Accrued salary account debit to
Salary account will be this entry
Okay, sure
Sir, what will be the effect of this
Do you know that every journal entry has two effects
There is a double entry system
Every journal entry has effects to accounts
Affects to accounts
Every journal entry affects two accounts
So on one hand you have credited this salary income
What you do is you add it in P&L
Like you did above in P&L plus one lakh rupees
And on the other hand friends
This will also be written in your balance sheet
In the name of an asset
Accrued income one lakh rupees
Because whatever money has not come
What is our asset
So one entry will also become an asset
And then your income will also be made
Income because you have earned
Asset because money is coming
Okay, okay
So if someone asks you after today
What is accrued income
Income due but not received
Income earned but not received
So what will you tell them
We have completed our work
Money is coming
We have completed our work
Money is coming
Call it accrued income
Call it income due
Call anything
For example, let's assume
Like someone has a job of photography
He went to the wedding
He did his photography
Fulfilled his responsibility
Now the owner of the wedding
He is saying that after 10 days
Will give your money
So for 10 days
For this photographer
What will be that income
Accrued income
He has fulfilled his responsibility
Money is coming
He has fulfilled his responsibility
Money is coming
Accrued income
Okay And what is the effect of this
Friends What is the effect
Tell Now you have to remember like this
In P&L
Will add in income
Will add in P&L income
And where will you write in the balance sheet
Asset side
Where will you write in the balance sheet
Asset side
Is it okay
Right Accrued income
What is the entry
Accrued income account
Debit to income account
Like what was written for salary
Accrued salary account
Debit to salary account
What are its two effects
In P&L
Credit side
Income Add And in the balance sheet
Asset side
Will remember
If there is any income of rent
Then its general entry
Accrued rent account
Debit to rent account
What will be the effect
In P&L
Credit side
Income Add And in the balance sheet
Asset side
Accrued commission
Just like this
Accrued dividend
Just like this
Anything It will be treated just like this
If you have fulfilled your responsibility
And money
Is left to come
Okay
Write it quickly
Write the entry
And write its effects
This is the entry
I said
Keep writing along with you
And its effect
Is written on the next page
Write these two things
Write
Just keep this much
What will be the entry
And what will be its effect
All MCQs
You will tackle
I have explained the concept
It is in the mind
Done Done Good
Okay So we will meet again
In the next clip
With the next concept
Till then
Thank you
Bye Bye
And take care
Bye Bye