posted by Eric .
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.
Receivable account would be debit and
income account would credit for e.g.
Interest income-credit for year 2007
In the year u received cash entry would
Cash Account -Debit
Because the receivable account should be offset against previous year entry