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Accounting

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What should be the general entries for a revenue which was earned in 2007 but not received till January 2008. Please tell me entries for both year 2007 and 2008. I mean, what entry should I make at the end of 2007 for the income I earned but not received, and what would be the entries for the money I received in January 2008, earned Last year. Thank you.

  • Accounting - ,

    Receivable account would be debit and
    income account would credit for e.g.
    Interest receivable-debit
    Interest income-credit for year 2007

    Year 2008
    In the year u received cash entry would
    Cash Account -Debit
    Receivable account-Credit

    Because the receivable account should be offset against previous year entry

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