Understanding Accruals in Accounting: A Simplified Guide
Understanding Accruals in Accounting: A Simplified Guide
Feb 22, 2025
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“Salary Paid or Salary Outstanding – which one is an expense? 🤔 As per the Accrual Concept, expense recognition depends on incurrence, not payment. 💡 Total Salary Expense = Salary Paid Salary Outstanding ✔ Profit & Loss → Debit total salary expense ✔ Balance Sheet → Show Salary Outstanding as Current Liability Understand this CA-level concept in seconds and never confuse paid vs unpaid expenses again! ✅ Key Learning: Expense is recognized when incurred, not when cash is paid. 💰” #AccountsClas
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