Home > Adjusting Entries, Part II > Adjusting Entries, Part II

Adjusting Entries, Part II

Part II
Accruals
Una sa lahat, kung titignan nyo sa dictionary, ang ibigsabihin ng “accrual” ay “additional”. So, accruals are additional Income or Expense that the company needs to recognize at the end of the period due to past transactions. Simple lang ang accruals. Ito lang ang pagrerecognize ng:

1. Accrued Income (Receivable Account)
2. Accrued Expense (Payable account)

Accrued Expense
Entry:

(dr) Expense
(cr) Accrued Expense

Accrued Income
Entry:

(dr) Accrued Income
(cr) Income

Baket ba nagkakaroon ng accruals? Diba, ang accounting natin ay “accrual basis” meaning to say, we should recognize income/gains when earned and expenses/losses when “incurred”. So, kabaliktaran ito ng Prepayments at Unearned Income kasi sa Accruals, nahuhuli ang bayad.

Kung nakapagrender ka na ng service or nakapagdeliver ka na ng goods at hindi pa nababayaran, magrerecognize ka ng Accrued Income.

Kung nakaavail ka na ng service or nakabili ka na ng goods pero hindi pa nababayaran, magrerecognize ka ng Accrued Expense.

Q: Eh baket ganon, hindi ba inentryhan ng accountant noong nagrender ka ng service or nagdeliver ka ng goods?

A: Eto ang usually na hindi naiisip ng isang estudyante. Ang accountant, hindi yan mag-eentry sa books hangga’t walang supporting documents. Kadalasan, nag-iissue ng resibo ang kumpanya kapag nabayaran na sya. So, nagkakaroon lang ng entry USUALLY pag may bayaran nang nangyari kasi dun nag-iissue ng resibo. So, since ang resibo ang supporting document ng isang trransaksyon, ito ang magsisilbing go-signal sa accountant para mag-entry sa books.

Anong wordings ng problems sa Accruals?
“the company recognized an accrued income/expense of ….”
“accruals of Pxx were to be recognized”

And so on and so forth.

So, ang pinagkaiba ng:

Prepayments/Uneanred Income – nauna magbayad bago serbisyo (bayad muna bago baba)
Accruals – una serbisyo bago bayad (study now, pay later)

*note: ang accruals, walang asset/liability income/expense method kasi wala namang initial entry ito. Ang initial entry mo palang ay yung recognition ng accruals.

[Updated on: ]

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