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on 1 january 2018. william owed $2000 in respect of the previous year’s electricity. william made the following payments on the year ended 31 december 2018
6 feb 2018 $2800
8 may 2018 $3000
5 aug 2018 $2750
10 nov 2018 3100at december 2018, william calculated that he owed $1800 in respect of electricity for the last part of the year
what is the electricity charge to SOPL for the year ended 31 dec 2018?
please iam confused of which iam going to use as accrued the $2000. or the 1800 explain please
You take the total paid during the year (11,650), subtract what was owing at the start of the year (2,000) because that was paid this year but is not this years expense, and add what is going at the end of the year (1,800) because that is this years expense even though it has not yet been paid.
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