Chapter 12: Accruals and Prepayments Flashcards
1
Q
What is the accruals concept?
A
The accruals concept is that costs should be recognised in the period they are transacted rather than when the income is received.
2
Q
What are the journal entries for accounting for an accrued expense?
A
Dr Expense
Cr Accrued expenses
3
Q
What are the journal entries for accounting for a prepaid expense?
A
Dr Prepaid expenses
Cr Expense
4
Q
What are the journal entries for accounting for accrued income?
A
Dr Accrued Income
Cr Sundry Income
5
Q
What are the journal entries for accounting for prepaid income?
A
Dr Sundry income
Cr Prepaid income
