Accruals

jewels.pjewels.p Font Of All KnowledgeRegistered Posts: 1,774
On a Practice Exam I did you had to do a Journal Entry for £400 for General Expenses that had been debited to Accruals and credited to General Expenses incorrectly. I got the journal entry correct but when it came to calculating the total General Expenses I only added £400 to the total as this is the amount that shouldave been debited to G.E in the first instance.

It shouldave been £400 + £400 I added. I dont get this as this surely means we are adding £800 to General Expenses instead of £400?:confused1:

Comments

  • rachy1975rachy1975 Trusted Regular Registered Posts: 366
    jewels.p wrote: »
    On a Practice Exam I did you had to do a Journal Entry for £400 for General Expenses that had been debited to Accruals and credited to General Expenses incorrectly. I got the journal entry correct but when it came to calculating the total General Expenses I only added £400 to the total as this is the amount that shouldave been debited to G.E in the first instance.

    It shouldave been £400 + £400 I added. I dont get this as this surely means we are adding £800 to General Expenses instead of £400?:confused1:

    this is because it had been credited in the first place.
    you have to debit the amount to make it how it was to begin with (before the amount was credited) and then the original transaction of debiting it...there fore you debit 800 in total..
  • jewels.pjewels.p Font Of All Knowledge Registered Posts: 1,774
    rachy1975 wrote: »
    this is because it had been credited in the first place.
    you have to debit the amount to make it how it was to begin with (before the amount was credited) and then the original transaction of debiting it...there fore you debit 800 in total..

    So it was!:blushing: I knew that! All this studying must be melting my brain lol
  • rachy1975rachy1975 Trusted Regular Registered Posts: 366
    haha i know how you feel....:001_tt2:
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