DirtyRay
Apr 8, 2007, 04:25 PM
Hey guys,
Just a quick Accrual question...
Basically been given the following 'The business has received an invoice for £1350, dated 26th March 2007, for electricity used during the period 22 February 2007 to 25 March 2007'
Right, Im just a bit confused... I've been doing reading on Accrual accounting... and from my research it seem to think that you put the charge in the accounts under the date the service finished... would this be 25 March? Or would I add up the number of days and split between the amount for each month? (the thing is were only recording the accounts for February in this example...
Thanks in advance...
Just a quick Accrual question...
Basically been given the following 'The business has received an invoice for £1350, dated 26th March 2007, for electricity used during the period 22 February 2007 to 25 March 2007'
Right, Im just a bit confused... I've been doing reading on Accrual accounting... and from my research it seem to think that you put the charge in the accounts under the date the service finished... would this be 25 March? Or would I add up the number of days and split between the amount for each month? (the thing is were only recording the accounts for February in this example...
Thanks in advance...