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17th TT: Payment Received for Unearned Income (O38)

The bank has now credited 5,390 our bank account with the interest earned on our current account during the two previous months. Following the accrual principle we recorded in Operation O35 C, Typical Transaction 12th above, the interest earned in the period (Q1) as an adjustment, at the end of said period. The recording was made to recognise that such bank interest had been earned during the period, from funds deposited in the bank, although it was not yet paid by the bank. The accountant keeps track of these accruals by computing the interest earned during the accounting period by funds deposited in every bank, at the bank rate of interest on deposits. The calculations are made based on bank statements at the beginning and at the end of the period, following the procedure outlined in Operation O35 C above.



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