Accurals and Prepayments

Can solo accounts deal with prepayments and accruals?

Kind regards

Elaine

Posted by Elaine on May 13, 2011 5:17 PM BST

Hi Elaine,

Yes. To deal with prepayments and accruals, first create a new asset account called 'Prepayments' and a new liability account called 'Accruals'. Then record a General Transaction between the appropriate balance sheet account (eg. Accruals) and the profit and loss account (eg. Employee Costs).

Regards,

Posted by Mark McLaren (Solar Accounts) on May 14, 2011 12:02 PM BST