Accounting




Not signed in (Sign In)

Categories



Welcome, Guest

Want to take part in these discussions? If you have an account, sign in now.

If you don't have an account, apply for one now.

Vanilla 1.1.2 is a product of Lussumo. More Information: Documentation, Community Support.

accounting exams









General Accounting Discussions: accounting for accruals

Bottom of Page

1 to 2 of 2

  1.  
    • CommentAuthorrao_uk
    • CommentTimeJun 25th 2008 edited
     
    Hi

    Can any one pls provide the meaning of accruals and end to end accounting entries for accruals eg : expense accruals
    thanks & kind rgds ..
  2.  
    Accruals - expenses due but not paid. (Payroll for the period June 16 thru June 30 and paid on July 5)

    June 30 Entry
    Debit Labor - 10,000
    Credit Accrued Payroll - 10,000

    July 5 Entry
    Debit Accrued Payroll - 10,000
    Credit Cash - 10,000

    Prepaids - expenses paid but not due. (Insurance paid a year ahead of time. Reduce the Prepaid by 1/12 each month)

    Insurance Bill $2400

    Debit Insurance 200
    Debit Prepaid Insurance - 2200
    Credit Cash 2400

    Next Month

    Debit Insurance 200
    Credit Prepaid Insurance 200

    Hope the above helps your understanding.

1 to 2 of 2

  1.