Accruals and Repayments Flashcards
What is the double entry for Accrued Expenses?
Debit - Expenses
Credit - Accrued Expenses
What is the double entry for the Reversal of Accrued Expenses
Debit - Accrued Expenses
Credit - Expenses
What is the double entry for Prepaid Expenses?
Debit - Prepaid Expenses
Credit - Expenses
What is the double entry for the Reversal of Prepaid Expenses?
Debit - Expenses
Credit - Prepaid Expenses
What is the double entry for Accrued Income?
Debit - Accrued Income
Credit - Income
What is the double entry for the Reversal of Accrued Income?
Debit - Income
Credit - Accrued Income
What is the double entry for Prepaid Income?
Debit - Income
Credit - Prepaid Income
What is the double entry for the Reversal of Prepaid Income?
Debit - Prepaid Income
Credit - Income
When does the rule of the reversal occur?
When talking about the following period
What kind of account is accrued expenses
Liability - used something but not yet paid
What kind of account is prepaid expenses?
Asset - paid for something but not yet used
What kind of account is Accrued Income
Asset - building up income, already done job
What kind of account is prepaid income
Liability - been paid but still need to do the job
