How to treat accrued interest in income and expenditure account and in balance sheet?

Dear student,

Accrued interest is the amount of interest income that ‚Äčis due for receipt but has not been received. It is an asset for the business.

In Income and Expenditure Account, it is shown as an income in the year in which it is earned, as we make accounts on accrual basis.
In Balance Sheet, its value is either added to the Investment it is earned from or as a Current Asset.


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Accrued interest is added in the respective fund it is earned from
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accrued interest is an income so will be added in previous interest in income and expenditure
nd in balance sheet it will come in asset side as accrued interest
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