ACCRUALS

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
WHATS THE BEST TREATMENT OF ACCRUALS. I CAN ACCRUE FOR BILLS AND WAGES ETC BUT WHATS THE CORRECT WAY TO USE THERSE ACCRUALS IN THE NEXT MONTH?

THANKS JO

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:ACCRUALS

    Reverse them!!

    In month 1 you dr electricity and credit accurals account so

    Month 2 dr accruals and cr electricity.

    Annette
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:ACCRUALS

    ...and then provide for new accruals in month 2?

    Regards

    Dean
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:ACCRUALS

    Thats correct.

    I put accruals through dated last day of the month then reverse them on the 1st of the next month then accruals for current month on last day and so on.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:ACCRUALS

    Thanks for your help, I thought that was the case but was thinking too much about it and getting confused. Jo

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