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Regarding: https://opentuition.com/topic/provisions-16/#orb_custom_bb_new_reply_anchor
Therefore if it is a liability why the double entry isn’t
Dr Expense
Cr LiabilityWhy it is CR Accrual?
Sorry for asking too much but I want it clear in my mind.
Many thanks,
Christa
The double entry is:
Dr an expense account
Cr a liability accountNow whether you call that liability account “Accrual”, “Fine”, “Penalty”, “Liability” … does it matter?
Personally I would prefer “Liability” rather than accrual.
However, your original post asked why was it an accrual and not a provision and my answer to that post still stands … it’s because it’s an actual confirmed liability rather than a provision which is a liability of uncertain timing or amount
OK?
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