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S/D 20 hart co directors’ bonus

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AA Exams › S/D 20 hart co directors’ bonus

  • This topic has 1 reply, 2 voices, and was last updated 3 years ago by Kim Smith.
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  • August 16, 2021 at 10:23 am #631723
    Noah098
    Member
    • Topics: 935
    • Replies: 352
    • ☆☆☆☆☆

    “Agree the individual bonus payments to the post year-end payroll records.”

    Maam dont you think there is a flaw out here? i mean even if directors bonus is paid post yr end, the expense will be charged in the payroll records in the current year-accrual accounting, right?

    August 16, 2021 at 10:32 am #631724
    Kim Smith
    Keymaster
    • Topics: 132
    • Replies: 8265
    • ☆☆☆☆☆

    NO – period-end accruals are effected through journal entries because they are not actual transactions themselves. In the fullness of time/due course, when the actual transactions happen, they will be recorded in the “normal way”.

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