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Adjustment to profit and suspence account

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FA – FIA FFA › Adjustment to profit and suspence account

  • This topic has 1 reply, 2 voices, and was last updated 9 years ago by John Moffat.
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  • April 29, 2016 at 2:04 am #312994
    abrizni10
    Member
    • Topics: 55
    • Replies: 49
    • ☆☆

    Sir I don’t understand this (this is taken from the opentution notes)

    When accounting for the telephone accrual of $70 at the year end, a single entry had been made. It was the expense account entry that had been missed out.

    I don’t get it, how come there is two accounts?

    April 29, 2016 at 8:40 am #313016
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54708
    • ☆☆☆☆☆

    If you have watched the lectures on accruals and prepayments, you will see that when the make an accrual we should debit the expense account and credit the accruals account.

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