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Accrued Expenses

Expenses are incurred but not yet been paid called as accrued expenses such as wages, salaries, telephone expenses etc.

 

Example 1, Telephone expenses incurred for the period of April 2017 is Rs.6,000, but not yet been paid during the month. The due date for payment of telephone expenses is 10th of May 2017.

 

 

Accounting Entry on 30th April 2017

 

Telephone Expenses A/c Dr – 6,000

 

To Telephone Expenses Payable A/c – 6,000

 

 

Payment Entry on 8th May 2017

 

Telephone Expenses Payable A/c Dr – 6,000

 

To Bank A/c – 6,000

 

 

Example 2, Salary incurred for the period of April 2017 is Rs.50,000, but not yet been paid during the month. The due date for payment of salary is 5th of the following month i.e. May 2017.

 

 

Accounting Entry on 30th April 2017

 

Salary A/c Dr – 50,000

 

To ESI Employee Contribution A/c – 1,000

 

To PF Employee Contribution A/c – 3,000

 

To TDS on Salaries A/c  – 4,000

 

To Professional Tax Payable A/c – 200

 

To Salary Payable A/c – 41,800

 

 

Payment Entry on 5th May 2017

 

Salary Payable A/c Dr – 41,800

 

To Bank A/c – 41,800

 

 

 

 

Related Topics

 

Prepaid Expenses

 

Adjusting Entries

 

Depreciation

 

 

 

Related Pages

  • Fixed Asset Entries
  • Payroll Journal Entries
  • Prepaid Income
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  • Accounts Receivable Process
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  • Discount Allowed and Discount Received
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  • Adjusting Entries
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