Creditors vs Accruals

[hellonwheels2]

Hello<BR><BR>Prob a straightforward question, but I'm having a thick moment!<BR><BR>What is the difference between having a balance in the creditors account, and having a balance in the Accruals account....??<BR><BR>I have supplier invoices overdue, and don't know if they are to be shown as creditor balance or accrual balance!!<BR><BR>Tx, you're all lovely!

[Steph]

accruals are expenses so are completely different to creditors.<BR>overdue invoices should be shown on the creditor balance!!!<BR>hope this helps<BR>steph

[hellonwheels2]

so any unpaid invoices that i have for the month do not appear in the p&l? <BR><BR>if it helps, the compnay i work for has not yet started trading, so all invoices are for expenses, rather than for purchases

[bryan]

Dr expenses<BR>Cr creditors

[Frankymo1e]

<br><br><< <i>accruals are expenses so are completely different to creditors.<BR>overdue invoices should be shown on the creditor balance!!!<BR>hope this helps<BR>steph</i> >><br><br><BR><BR>Accruals have to appear in the balance sheet because they are liable to lead to a request for payment (work done/deliveries received for which our firm will owe money). At year end, outstanding accruals and creditors are both to be included in the balance sheet.