Help Acruals & Prepayments

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
Can anyone explain in the simplist way how to do Acruals and prepayments:-because i have never understood them & my teacher has only gone through it once!!!Thanks :( :shock:

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  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Help Acruals & Prepayments

    There are many threads with this subject and using the search option at the top right of the page and typing accruals and prepayments in to the search phrase box will bring them up.

    In brief accruals are costs or services received but not yet charged by the supplier in the accounting period and prepayments are invoices/payments for goods or services to be carried out over a future period.

    Generally, accountancy and audit fees are accruals at Year End and things like Rent and Rates which are generally paid in advance are prepayments.

    Hope this helps.

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