Accrued Expenses Journal Entry

 Accrued expenses have been incurred but have yet to be paid or recorded in the accounts. These are typically recorded at the end of an accounting period. Here is the typical journal entry for accrued expenses:

1. When recording the accrued expense:

   • Debit the relevant expense account.
   • Credit the accrued expenses (or accrued liabilities) account.

   Example (assuming accrued salaries):

   Date         Particulars                        Debit (₹)     Credit (₹)
   ------------------------------------------------------------------------
   2024-06-30   Salaries Expense A/c               10,000
                To Accrued Expenses A/c                           10,000
                (Being salaries accrued for the month)
   

2. When the expense is paid in the next period:

   • Debit the accrued expenses (or accrued liabilities) account.
   • Credit the cash or bank account.

   Example (when salaries are paid):

   Date         Particulars                        Debit (₹)     Credit (₹)
   ------------------------------------------------------------------------
   2024-07-05   Accrued Expenses A/c               10,000
                To Bank A/c                                        10,000
                (Being payment of accrued salaries)
   

These entries ensure that expenses are recognized in the period in which they are incurred, adhering to the matching principle of accounting, and providing a more accurate representation of the company's financial position.