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Lecturer, in this case,
If I just : Dr Accrued Bonus , Cr Cash at the new year period when the cash is paid , is it correct without recognizing any bonus expense in the new year ?
How to deal with any under or over accrual ?
Excuse me, lecturer
For example, if a company purchases a fixed asset before the year end and the invoice is received before the year end, but the fixed asset is received after the year end,
is it correct if the company already capitalized the fixed asset based on the invoice date before the year end but not receiving date after the year end ?Could you please explain me why doing more substantive procedures make detection risk be lowered ?
Therefore, the journal entry to correct this error is
Dr petty cash account
Cr suspense account ?Excuse me, Lecturer
I got confused with these following terms :
Payments of electricity made during the year
1 August 20X0 for three months to 31 July 20X0 $600
1 November 20X0 for three months to 31 October 20X0 $720Therefore, could you please explain me those above terms ? Which period do these payments cover ?
Does it mean company gets repaid of $250,000 from loan note owner or they pay $250,000 to loan note owners ?
Excuse me, lecturer
I got confused with these. It is from BPP book.
If the payment is received before the end of the period in which the debt was written off.
Dr receivable control account
Cr irrecoverable debt expense and record the receipt in the normal way.
If the payment is received after the end of the period in which the debt was written off.
Dr Bank account
Credit sundry income – irrecoverable debts recoveredTherefore, in the exam question, when the exercise mentioned that the irrecoverable debt which was written off from the previous year was recovered, what transcation should I make ?