Accruals basis of recording expense in P&L

This topic has 1 reply, 2 voices, and was last updated 12 years ago by alkemist.

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July 28, 2013 at 6:07 pm #134363
vidi
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Hi guys
I need help with the following scenario:
Regulatory fees 2012 – For the period 1 January 2012 to 31 December 2012: USD 118 (Paid on 30 November 2011)
Regulatory fees 2013 – For the period 1 January 2013 to 31 December 2013: USD 200 (Paid on 30 November 2012)
Accounting period runs from 1 July 2012 to 30 June 2013.
How much goes in my income statement (prepared under accruals basis) for the year ended 30 June 2013, and why?
Thanks!
July 29, 2013 at 2:15 am #134373
alkemist
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P&L = (6/12*118) + (6/12*200) = 59+100 = 159
only 6 months of each years dues relate to the period in question since july 2012 to december 2012 = 6 months and january 2013 to june 2013 = 6 months. It is called apportionment and isimportant under accruals accounting.
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