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    AnswerMePlease's Avatar
    AnswerMePlease Posts: 1, Reputation: 1
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    #1

    Sep 5, 2008, 08:35 AM
    Journal entry
    In setting up a current liability I debit expense and credit the liabilty. The expense then shows in the P&L even though it hasn't been paid yet. Is this correct?
    AdamUTsel's Avatar
    AdamUTsel Posts: 100, Reputation: 2
    Junior Member
    		  
    #2

    Sep 5, 2008, 12:42 PM
    Yes, this is correct if you are using accrual based accounting.
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