Answer Posted / chandra
It is an Incurred expenditure but not paid yet, therefore
accrue ( increase ) the expenditure so we are not missing
out on our liability. This way we account all expenditure
that is to be paid , but not paid yet.
In this case, interest is accrued when the interest becomes
due on on debt obligation on a stipulated time but not paid
yet or no actual cash out flow, but we still take into
account the interest expenditure by accounting or accruing it.
Is This Answer Correct ? | 6 Yes | 4 No |
Post New Answer View All Answers
What are a debit note and credit note with an example?
A Company has not deposited its ESI /PF dues from 01-04-10 till 31-12-10 in a year (Both the shares). What is the maximum time limit for that and is the liability as on date. Management wants to daly at the maximum, but want the calculations of each & every aspect- monthwise. The avrerage no. of employees are 50 and the salary is around 2.00 to 2.5 Lacs per month.
Explain in simple terms what is the difference between asset, equity, and liabilities?
Recall a time when you faced a dissatisfied and aggressive customer. How did you handle it?
what's the difference between impress cash account and petty cash account
HELLO FRIENDS I WANTED TO THAT IS DUPLICATE KEY MAKING CHARGE IS UNDER THE HEAD OF GENERAL EXPENSES
My boss said to me "Calculate Tds for the month of may 2018 from bank statement". my Boss business is Proprietorship of Construction and designing work. How I can calculate Tds liability.
In which condition a vendor raise excise invoice & what are the effect of excise invoice on client ?
What is project implementation?
Mention your extra-curricular interests. Which do you actively pursue? How do you see these developing in the future?
what is the entry of credit card received excess amount entry in tally and their under group names
Detail your responsibilities in accounts receivable
in insolvency we have to prepare deficiency account but why we do not prepare this account as per general principle i.e Dr Cr To By etc , and deficiency account is which account?
Ledger Enteries
HOW DOES THE ROLE OF THE MANAGEMENT ACCOUNTANT COMPLIMENT THAT OF THE FINANCIAL ACCOUNTANT