Hi All,
Please help me to understand why accruals are not made with auto reversal during year end of accounting..
Also , pls let me know , What the company would do on the excess accruals made during year end?
Regards,
Need help to learn (Working) (7 Points)
18 April 2021Hi All,
Please help me to understand why accruals are not made with auto reversal during year end of accounting..
Also , pls let me know , What the company would do on the excess accruals made during year end?
Regards,
Need help to learn
(Working)
(7 Points)
Replied 18 April 2021
Need your help for the below 3 questions..
1.Generally Accruals are auto reversed in the subsequent months. But during Yearend alone, accruals are made in Standard mode and not in reversal mode. Why?
2.Also, If the expenses are very less than the accruals, how that excess accruals would be treated during year end?
3.What if, Accrual not made in the month, how the profit/loss statement would be ?
Regards,
sabyasachi mukherjee
(27099 Points)
Replied 19 April 2021
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