Accurals And Prepayments

Question 1

Define accruals

Answer 1

Expenses that relate to the accounting period that have no been paid for

Question 2

What is the double entry form accruals and where can they be found?

Answer 2

D - expense in pnl
Dc- accrual expenses as liability in statement of financial position

Question 3

What is the double entry for prepayments

Answer 3

D. - prepaid expense sin s of liabaility
C - expense in pnl