Accruals and prepayments of income

amy256

Any tips on remembering what side the balance b/d is for accruals and prepayments of income?
For some reason I just can't get my head around it

Thanks in advance

sdv

there are some fundamental characteristics of accruals and prepayments that you must have an understanding of;

1 Accruals always increases both income and expenses
2 Prepayment always reduces both income and expenses

3 Accruals on expenses are a liability
4 Prepayment on expenses are Assets

5 Accruals of an Income is an Assets (opposite of expenses)
6 Prepayment of an Income is a liability (opposite of expenses)

All assets brought down have debit balances
all liabilities brought down have credit balances