Accrued revenue is revenue which has been earned but not yet invoiced to a customer. Accrued revenue should not be confused with deferred revenue which is revenue received but not yet earned.
A business earns interest on its money deposits of 1,000 but does receive the amount into its bank account until after the month end. As the income has been earned but not received, it needs to be accrued for in the month end accounts.
The double entry bookkeeping journal entry to show the accrued income is as follows: