@rakesh, Thank you for the video. Its very useful. However, I have a confusion in the last part where you have already Debited your expenses. Then using the accrual scheme, you are crediting your expenses monthly. So if you run your TB for the first month then it would show Full Expense minus First month i.e 1200-400=800 for December'22 which does not look correct to me. Please advise.
Hi very clearly explained the Revenue accrual process. Thanks
@rakesh, Thank you for the video. Its very useful. However, I have a confusion in the last part where you have already Debited your expenses. Then using the accrual scheme, you are crediting your expenses monthly. So if you run your TB for the first month then it would show Full Expense minus First month i.e 1200-400=800 for December'22 which does not look correct to me. Please advise.
'Liability' for customer prepayment and 'Asset' for vendor prepayment
you took the account type of prepaid expense(Dr) as Liability it should be asset
And can you please show accrued revenue process as well.
Sure