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Accruals in Interim assessment

Forums › ACCA Forums › ACCA FA Financial Accounting Forums › Accruals in Interim assessment

  • This topic has 0 replies, 1 voice, and was last updated 5 years ago by japime.
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  • August 27, 2020 at 10:28 pm #582394
    japime
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    • Topics: 24
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    In Kaplan Financial accounting 2014 interim assessment section b, there was a statement there that said ” An accrual should be made for unpaid distribution costs of $ 4,567″

    The right treatment there was they added it to distribution expense in SOPL

    Im confused why they did that, because since it was an unpaid accrual, shouldnt it be recorded in SOFP as an accrual? Can someone explain this?

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