ABSTRACT
Interest-Revenue, Interest Accrued and Interest Due, are confused under the one title “Interest,” although they have three distinct functions. Interest-Revenue (which alone may be termed simply “Interest”) shows how much interest has been earned during the current fiscal period. The balance of Interest Accrued shows how much of those earnings and of previous earnings has not yet fallen due. The balance of Interest Due shows how much of that which has fallen due remains uncollected. The General Ledger accounts of Interest, Interest Accrued and Interest Due will now be exemplified in simple form as to mortgages only. It is easier to combine the several kinds of interest, when carrying them to the Profit and Loss account, than to separate them if they are all thrown in together at first.
