Define Accrual & what is accrual interest?
Answers were Sorted based on User's Feedback
Answer / chintan joshi
Accrual:
Accrual is one of the accounting concept. Expense or revenue
is booked as soon as they incur not when they are realized.
Accrual is also a provision of the cost.
Accrued Interest.
Best example which will clarify the concept from root.
Company A has taken a loan of Rs. 6,00,000 of which Rs.
60,000 interest is payable annually. Some book entry as follow.
on 31st March 2009.
Interest dr. 60,000
Bank cr. 60,000
Above practice is not accrual.
Following will explain why Accrual is called provision of
cost because?
Rs. 60,000 Interest will be reported in all 12 months
because amount of loan is utilized in all months. So per
month posting comes to 60,000/12 = 5,000.
On 1st April 2008.
Interest dr. 5,000
Accrued Interest cr.. 5,000
Same practice is followed upto March 2009. And when interest
is paid then accounting entry is like,
On March 2009.
Accrued Interest dr. Rs. 60,000
Bank cr. Rs. 60,000
Is This Answer Correct ? | 19 Yes | 1 No |
Answer / amar sawant
Accrual means an Outstanding. Accrual can be payable and
receivable.
Accrual interest means the interest which is yet to be
received or which is yet to be paid.
Is This Answer Correct ? | 3 Yes | 1 No |
Answer / jksharma
Accrual means- monthly
Accrual interest means - total receive interest.
Is This Answer Correct ? | 4 Yes | 6 No |
Expand ------UNDP
what is the difference between time keeping and time booking?
Hay I am suresh from Bastar. I was just complete my interview on 29-04-2010 at Raipur. The panel Board asked a questions are
2 Answers State Bank Of India SBI,
Expand---------TRSP
definition of "call in arrears"
what is derivative?
i dono how to calculate vat pls help me
What part can management policy play in the analysis of cost behaviour?
What is finance lease
0 Answers Capital IQ, Genpact,
DESCIBE EXPORT PROCEDURE
Expand---------OST
WHAT IS SECONDARY TRACKING FLEX FIELD QUALIFIER AND HOW IT IS USED?