Help on fixed asset accrual

Hi I'm hoping someone can help.......If there is a fixed asset that is in use but an invoice has not yet been received at the year end I am assuming an accrual is needed? However seen as the journal entries Dr Fixed asset additions and CR Accruals are both balance sheet items it is confusing me whether this is correct!?
Thanks

Comments

  • Marco
    Marco Registered Posts: 23
    Hi Sam
    I am assuming that you are right,
    Dr Assets
    Cr Accruals
  • Sam1919
    Sam1919 Registered Posts: 11
    Thank you. I'm now on the following year so as expected auto reversal is Dr accruals and Cr assets but my TB is £1,000 out and I thought it could be relating to the £500 which was the cost of the asset mentioned above!? Maybe I'm looking in the wrong area!?
  • Marco
    Marco Registered Posts: 23
    No you should Dr Accruals and Cr the Bank because you are paying for the asset from your bank
  • Marco
    Marco Registered Posts: 23
    this would be adjustment
  • Marco
    Marco Registered Posts: 23
    if your TB doesn't balance its maybe you put them account in same side thats why its doubled
  • Sam1919
    Sam1919 Registered Posts: 11
    Oh right I thought it would be
    Dr accruals
    Cr assets
    then
    Dr assets
    Cr bank
    But I guess that has the same end result as your postings anyway!?

    I'm still £1,000 out on the Cr side either way......
  • Marco
    Marco Registered Posts: 23
    Can you send me the whole question and ur TB please so i can have a look
    [email protected]
  • MarieNoelle
    MarieNoelle Moderator, MAAT, AAT Licensed Accountant Posts: 1,369
    Just a thought...you say you haven't received an invoice yet but has the asset been paid for already? in which case the proper entry would be Dr Supplier Cr Bank. Then on receipt on the invoice you would enter Dr asset Cr Supplier.
  • Sam1919
    Sam1919 Registered Posts: 11
    I will do later i haven't actually got it on me right now it's just something that's bugging me.
    Many thanks
  • Sam1919
    Sam1919 Registered Posts: 11
    MarieNoelle at the end of the first accounting year the asset had not been paid for. I'm now working on the next year's accounts so it has now been paid for.
    Thanks for your comment.
  • MarieNoelle
    MarieNoelle Moderator, MAAT, AAT Licensed Accountant Posts: 1,369
    Then I would do Dr Asset Cr Supplier and when you pay Dr Supplier Cr Bank. No accrual needed?
  • Marco
    Marco Registered Posts: 23
    Yeah I would say the same. Marie is right
  • Sam1919
    Sam1919 Registered Posts: 11
    Thanks guys and girls great help
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