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Post Info TOPIC: Accruals and prepayments
Bmonster


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Accruals and prepayments
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I have a sales invoice dated April but it needs to be included in my march figures - what is my journal entry?

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ES


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Debit account

Credit Accruals

eg if it was for rent debit rent account   credit accruals account



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MarkS


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Hi BMonster

Dont think the journal above is correct.

What you want to do is accrue income from April into March.  In that case the journal would be

Dr Prepayments/Accrued Income

Cr Sales



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Mark Stewart CA

http://stewartaccounting.co.uk/

Providing accounting, bookkeeping, payroll and tax services to small and medium sized businesses across Central Scotland and beyond.
ES


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Mark S

Your right I read it as a purchase invoice rather than sales, answering the door at the time!



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Bmonster


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Many thanks

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Bmonster


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I have another question!!!!

I have another sales invoice dated march but stock didn't go until April so what would be my journal entry??


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ADAS


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Hi

The d/e is

Dr Income
Cr Sales Ledger Account / Trade Debtors

It's the same principal as before. The Sales Income is in the wrong accounting period.

hth

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Tony

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HendyPhilhendy


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In the first example, it would possibly depend on what it is for but you could potentially Debit Work in Progress or Amounts recoverable on contracts instead.


In the second example I would probably Credit Deferred income rather than Trade Debtors/ Sales ledger as the invoice still exists.

In the end, they all have the same effect!

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