accruals and prepayments jnls!

System
System Posts: 100,534 🤖 Admin 🤖
edited 10:08AM in AAT student discussion
Hi there, anyone, please can you tell me what are the double entries for thge above, i have forgotten it completely! <BR><BR>Many thanks, M

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  • System
    System Posts: 100,534 🤖 Admin 🤖
    accruals and prepayments jnls!

    Dr the exp code you want to accrue <BR>Cr Accruals<BR><BR>Cr exp code want to prepay<BR>DR prepayments<BR><BR>Hope that helps
  • System
    System Posts: 100,534 🤖 Admin 🤖
    accruals and prepayments jnls!

    It does depend on what yuor are doing really. Prepayments sit in the balance sheet until such a time as you need to release the amount . For example you have an invoice that covers a 3 month service. You will debit prepayments nominal account. The monthly (apportioned)journal release will be Debit P&L expense code and Credit Prepayments balance sheet. Be wary as you must always indicate in your journal description where it is P&L or B/sheet at Techncian stage.

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