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Answers to questions

Example 3

A business entity earns bank interest income of $300 per month. During the
year ended 31 December 20X6, bank interest of $3,000 has been received.

Required:

Calculate the bank interest income earned for the year ended 31
December 20X6 and the amount of accrued income to include in the
statement of financial position at 31 December 20X6.

Example 3: Solution

The total amount credited to the statement of profit or loss for the year ended
31 December 20X6 should be $3,600 (i.e. 12 × $300).

The amount received during the year ended 31 December 20X6 was $3,000.

Therefore, accrued income to include within current assets in the statement of
financial position at 31 December is $600 (i.e. $3,600 earned less $3,000
received).

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