Accruals in receivables
This query is : Resolved
15 February 2022
i found Accruals in management accounts after Accounts receivables. and they have provided ageing for the same as up to 30 days.
i have no idea under which heading accruals fall into under Receivables. can u please explain audit procedures as well for accruals
i have no idea under which heading accruals fall into under Receivables. can u please explain audit procedures as well for accruals
17 February 2022
I hope in this case you are referring to the Income accrued. It is a situation where the work is completed but the invoice has not been raised. For example, let say that as per the agreement, the work has to be completed say within 45 days from the start of the agreement but the invoice is to be raised after review / acceptance by the client and 30 days from the review. Now if you are closing the books on the month end, you have to accrue the income for the month end although you will raise the invoice after 30 days(after acceptance) and record the income.
Hope the above example clarifies your query
Hope the above example clarifies your query
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