accurals unit 5

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

Comments

  • Paul24
    Paul24 Registered Posts: 578
    Sorry, that doesnt make any sense to me, I cant help. Can you set it out clearer?
  • crispy
    crispy Registered Posts: 465 Dedicated contributor ? ? ?
    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
    meibaker Registered Posts: 481
    thanks for that crispy.
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