ACCRUED EXPENSE
ACCRUED EXPENSE
Accrued expense is a concept in accrual accounting that refers to expenses that are recognized when incurred but not yet paid.
EXAMPLES
- Salaries
- Goods received but the invoice has not yet received
- Interest on loan
JOURNALS ENTRIES
Electricity Consumption for May 2021 (Accrued)
Bill received on 5th June 2021
Bill paid on 15th June 2021
On 31st May 2021
Electricity Expense A/c Dr 1000
Electricity Expense payable A/c 1000
On 5th June 2021
Electricity Expense Payable A/c Dr 1000
BSES Limited 1000
On 15th June 2021
BSES Limited Dr 1000
Cash A/c 1000
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