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Can you explain me why omitting a opening accrual will result in a unbalanced trial balance?
I’m a bit confused..
Also what happens at the end of the year when you close the accounts you are left with a credit balance on the accrual’s account with no corresponding debit when you start the following year so wont that result in a unbalanced trial balance?
Thank you for your helpIf you are wanting me to answer then you should ask in the Ask the Tutor Forum – this forum is for students to help each other.
Have you actually watched my free lectures on this (the lectures are a complete free course for Paper FA and cover everything needed to be able to pass the exam well).
There is no debit for the opening balance – it is the balance left on the account at the end of the previous year. If the opening balance is omitted at the start of the new year then the closing balance will also be wrong and the trial balance will not balance.
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