Accrued Expenses Debit or Credit

The normal, positive, favorable or usual balance of Accrued Expenses is credit balance and unfavorable, unusual, negative or unusual balance is debit balance. When these are incurred or increased, we credit these and when these are closed or decreased, we debit these according to the Rules of Debit And Credit.

Usually, accrued expenses (which are Current Liabilities) are credited as mentioned above, however, when these are decreased or closed, then we debit accrued expenses instead of credit such as in case of Reversal Entry, the accrued expenses are debited.

When the expenses accrued or outstanding or payable for the month for which the services already received, have been paid off, then we record the following entry:

                                         Accrued Expenses a/c   XXX

                                                                              Expenses a/c   XXX

                                                          (Accrued Expenses Now Reversed)