Income

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.