Bookkeeping

how to record deferred account payable or loan amounts in accrual basis?

Since the pandemic of the service business needed to defer its payables to most of their vendors or creditor. since no bill, invoice or statement is received accrued payables within their schedule is also needed to be recorded. Is there any difference in terms of bookkeeping? is separate account name required?

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Answer

  1. 10 Answers

    No need to segregate these amounts or create separate accounts. For accrual basis, you will record the payable/loan transaction in the period it was originally due regardless of an extension of time for that payable/loan.

    For example, you have a utility bill that is for the period 10/1/20 – 10/30/20 and you receive the bill 11/5/20. The utility company has granted you an extension to pay this bill without penalty until 12/31. You would still record the bill for 10/30/20 to get the expense in the correct month/period, but your due date is now net 60 instead of the whatever the original terms of a normal bill would be from them (net 15 or net 30).

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