An accrual is an amount outstanding for payment by the end of an accounting period, so has not been entered into the ledger accounts. In accounting for accruals, the effect that needs to occur will be to increase the relevant expenditure in an attempt to account for the outstanding transactions which may not have … Read More

Below is a handy chart on accounting adjustments: prepaid expenses, prepaid income, accrued expenses and accrued income. Knowing what to debit and what to credit for each will come in handy in your exams. Accruals and Prepayments – YouTube