If you make an accrual for a particular month for example July, you will then reverse that accrual at the start of the next month. Accruals and Prepayments are 2 seperate things.
Accruals are processed between balance sheet and P&L, when the buiness inccurs an expense at an accounting period but has not yet received the invoice. The aim of this is to record an expense related to the period.
the accruals you accountant posted for £7,750 should have been reversed out of the balance sheet and gone into the purchase ledger when the client receives the invoice for the accrued item.
I would do things (1) Ask the accountant for a list of expenses that make up £7,750.
(2) Double check that the expenses they have accrued, have not been entered twice in the P&L, when you processed the invoices at a later month.
Your Accountant should have an accruals shedule giving details of what has been accrued, how much of it has been accrued and when it needs to be reversed or when the costs is expected. This will give you the i nformation you need so you can reverse the ones you need accordingly.
explain entries related to accrued expense.
