In accordance with matching principle, we make provision for the expenses which have not been billed by our suppliers or the company has not paid out the expenses, if the underlying services are rendered in the corresponding period. Example for accrued expense, include:
1. Accruals for audit fees, tax agent fees
2. Accruals for Payroll, Bonus & CPF
3. Accruals for rental
etc.
The company can make the accruals based on the agreed quoting from the suppliers. The accruals for expense entry:
Dr. Expense ( P & L)
Cr. Accrulas (Balance Sheet- Liabilities)
