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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FA – FIA FFA › Accruals
You said in your lecture that year-end that if we wrongly estimate the accruals by underestimate then we need to charge more expense at the first day of next year.
The double entry would be:
DR Telephone expense
CR Accruals
However if we wrongly overestimate the accruals then we need to reverse the accrual at the first day of next year.
The double entry would be:
DR Accruals
CR Telephone expense
Is that correct?
However
Correct (although you cannot ever be asked to write up t-accounts in the exam).