‘coun PrepaymensFARIOO/EMTS7E(2) ADJUSTMENTS FOR ACCRUALS AND PREPAYMENTS. EXPENSES A ‘A. Accrued expenses (Expenses owinglyet to be paldlexpense incurred but not yet paid) Examples : Electricty, Water, Telephone and other ulti bls (1) Accrued electricity expenses amounting to RMIO0. ‘Journal enies: Dr Electicty Exp A/C-TPL_ RM1OO (CrAccrued Exp AIC-BS —RMI00 ‘Trading, Profit & Loss AIC for the Elect expenses A ___" Yea ended 3122004 (extract ir Rit Ri i JanNov 2004 Cash Book 500 Excenses (1) Dec 2004 Accruederp 100 | Dec 2004 Prof Loss AC 600 Electro oop | 0 Seo | 3) Balance Sheot as at 31.42.2004 (extract) RM Ri RM Current abies Dec 2004 Balance cid 100 |(1) Dec 2004 Electricity exp 100 Accrued expenses 100 700 “00, x ‘meractiy 2005‘Accu PrepaymenFARIOOVEMTS78(2) . Prepaid expenses (Exponses paid In advancedioxp for next accounting period already paid now) Examples :Insurance,road tox (2) Prepaid insurance expenses was RM200, ‘Journal entries: Dr Prepaid insurance AIC 8S RM200 Crinsurance Exp AC-TPL RMZ00 Trading, Profit & Loss AC for the = Insurance expenses AIC-TPL year ended 31.12.2004 (extract) RM Rt RM Ri Febo4-Feb 05 Cash book 1,000 | (2) Dec 2004 Prepaid expenses Expenses (enFeb2005) 200 Dec2004 Profit Loss AC _ 800 + Incurance 800 p00] ooo. a Propaid expenses AIC ~ BS ay Balanco Sheet as at 31.12.2004 (extract) RM] Rit RM Current assets (2)Dec-2004 Insurance 200 | Dec 2004 Balance cfd 200 Prepaid expenses 200 smeacisopey 2008. Acerued revenue (Revenue should be earned but not yet received) Examples : Sorvicos provided such as consultancy work (3) Accrued revenue was RM,000. ‘Journal entries: Dr Accrued revenue AIC-BS — RMI,000 cil Prepayment FARIOO/EHT378(2) REVENUE oe er Crincome /C-TPL M3000 receives Trading Profit & Loss for the Conssitoncy fet “Seriees WC income year ended 31.12.2008 (extract) FM Ri Ri Ri tncome ec 2008 Prof Loss 11,000 | Feb-Nov 2004 censor fe, AG Cash Book 10,000 Sareea “1.000 ____Acerued revenue wc” aise" Balance Sheet as at 31.12.2004 (extract) Ri Ra Rut enslta ‘Curent assets (@)Dee2008 “Gers 17,000 Dec 2004 Balance old 1,000 fee reaiued cere rover 1,000 weaciiopey 2005 000Examples : Rental income, construction income. (4) Prepaid revenue is RM2,000. ‘cra Prepaymestyranasy Prepaid revenue (Revenue received in advanced/unearned revenue) “Journal entries: Dr Rental received AIC-TPL_ RM2000 ‘CrPrepaid revenue AIC-5S -RM2,000 ‘Trading Profit & Loss NC for the year ended 31.12.2008 (extract) RM RM RM (4) Dec 2004 Prepaid rey 2,000 Febo«-Feb05 Cash Book 18,000 Income (Van-Febd) Dec 2004 Profit & Loss 16,000 Rental received 16,000 AG Ss 7000 7,000 | Balance Sheet as at 31.12.2004 (extract) Rit RM Dec 2004 Balance cld 2,009 | (4) Dec 2004 Rental income 2,000 2.000) ezecisopnay 2005