Accruals Flashcards
1
Q
Double entry for Accruals
A
Dr Expense, Cr Accruals
2
Q
Double entry for Prepayment
A
Dr Prepayment, Cr Expense
3
Q
How should accruals/prepayments brought forward at the start of the year be treated?
A
They must be reversed
4
Q
what is the difference between accrued expense and accrued income?
A
accrued expense is a liability; accrued income is a current asset
5
Q
what is the difference b/w prepayment and deferred income?
A
prepayment is an asset; deferred income is a liability
6
Q
double entry for accrued income
A
Dr accrued income, Cr revenue
7
Q
double entry for deferred income
A
Dr Revenue, Cr deferred income
