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Income Accounts

Income earned is the money which the business receives for doing business with customers. If you cut hair in a salon and the client pays N$60,00 for it, this is money earned for services rendered. If you sell groceries, the money the business received, also called sales, is income earned.

  • Current income: If a service business receives money for services rendered.
  • Sales: if a trading business sells goods.
  • Commission received: commission means you receive an amount of e.g. 15 % of the selling price for all goods sold on behalf of another person or business,
  • Rent income: The rent we receive when renting a part of the business's buildings.
  • Interest received on current account: Interest which we receive from the bank if we have money in our current/cheque account.
  • Interest on fixed deposits: The bank pays us interest if they use money that we invested with them for a certain period.
  • Interest received: Interest from debtors if they do not pay their accounts on time.
  • Bad debts recovered: Money received from debtors after we have already written off their accounts. (We say that they disappeared or are bankrupt and cannot pay us.)
  • Discount received: The creditor says it is alright if we do not pay the full amount owed to him, because we pay well in advance.