{m}.{s}.1 Again for the sake of clarity we have shown previously only one accrual. There will often be more than one expense to be accrued at the year end.
Year end 31 March 2009
Thus at 31/3/09 our accruals are:
Loan interest | £200 |
Electricity | £360 |
£560 |
These will be recorded by the journal entry:
2009 Mar 31 | Dr | Cr | |
Accruals | 560 | ||
Loan interest | 200 | ||
Electricity | 360 | ||
to record closing accruals |
If you find it easier you can of course put through two entries:
2009 Mar 31 | Dr | Cr | |
Loan interest | 200 | ||
Accruals | 200 | ||
To record loan interest accrual |
2009 Mar 31 | Dr | Cr | |
Electricity | 360 | ||
Accrual | 360 | ||
To record loan interest accrual |