Accruals?

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
Hi,<BR><BR>Could anyone give me a bit of help please<BR><BR>I am just starting a new financial year and I have an accrual for Electricity from last year. How do I deal with this in this years accounts?<BR><BR>Thank you

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Accruals?

    I was struggling with this as well for my practice exam questions.<BR><BR>I think on the credit side of the electricity account, you bring forward the amount from last year as it is a liability.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Accruals?

    Thank you for your help
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Accruals?

    Hi<BR><BR>Just a quick question relating to this topic<BR><BR>Since last years accrual is a liability this year - this will be a Credit posting in the Electric Account<BR><BR>Where will the debit posting go will this be in the Accruals Account?<BR><BR><BR><BR>
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Accruals?

    Assuming you have a separate accruals account, then yes, this is the place for the debit (to clear the liability). If you do not maintain a separate account for accruals, then the credit entry in the electricity account will simply be a balance brought down rather than a new entry this year, so you don't need to worry about any debit entry.<BR><BR>Hope that helps.<BR><BR>Andrew Harrington

Categories

Privacy Policy