accurals unit 5

meibaker

this quesition just confused me a bit more now
accured advertisin expense of 1500 were debited to the advertising expenses account twice, no other entries was made
Dr Cr
advertising expenses 1,500
suspense 1.500
accruals 1,500
suspense 1,500
why should credit accruals account instead debit, if it's entered twice then should debited instead?
please help

Paul24

Sorry, that doesnt make any sense to me, I cant help. Can you set it out clearer?

crispy

Hi,

The orignal journal would of looked like:

Dr Advertising £ 3,000
Cr Suspense £ 3,000 (As no other entries were made)

To correct and clear the suspense account:

Dr Suspense £ 3,000
Cr Advertising £ 1,500
Cr Accruals £ 1,500

After posting the above correction, you would have the correct advertising expenses of £ 1,500 and accruals of £ 1,500.

meibaker

thanks for that crispy.