Thanks for getting back here, Navneet.

On behalf of my colleague Angelyn_T, let me share the screenshots.

You are correct about the deferred income account and I've created that as Other Current Liability in the Chart of Accounts. Then, assigned it to an item. Here's a sample screenshot for reference. 

I use the item on the invoices and bills you mentioned above. Here are the sample screenshots:

After recording the transactions, here are the sample screenshots for the Profit and Loss report for Cash vs. Accrual:

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