# June 2007 - Task 1.6

Registered Posts: 72 ? ? ?
Hiya

Need some help please if you can.

Calculate the general expenses.

Can someone explain why i am having to work it out for 2 months and not 3, also why is there an accrual? As they have already paid it for 3 months havent they, so wouldnt that be a prepayment?

Thanks
Jackie :001_unsure:

• Registered Posts: 67 ? ? ?
Year ending 31 march

Electricity paid in may (at the start of a new financial year for the period 01 Feb. to 30 April.

So the electricity payment for the period 01 Feb. to 31 March is missing (that’s why an accrual)

So calculation

135£ / 3= 45 £ for 2 month 90.00 Accrual

General expense 1750£ at the end of the financial year
Add the missing payment for 1 Feb. to 31 March 90

1750£+90£=1840£

I hope this helps

katrin
• Registered Posts: 72 ? ? ?
I dont understand why it is missing as they paid it Feb-Apr - isnt march included in there?
• Registered Posts: 67 ? ? ?
because the payment was during may so after the 31 march(end of financial year)

katrin
• Registered Posts: 15 Dedicated contributor ? ? ?