Accrued Legal Fees Journal Entry

Accrued Legal Fees is the fees which is not paid to the law firms against the services which had been rendered to the company by such law firms during the current accounting period. It is a Current Liability for the company’s business as the payment is not paid to the law firms while the services are rendered to the company for the period. It is shown on the Balance Sheet.

The adjusting entry to record accrued legal fees is shown below:

                                         Legal Fees Expense a/c  XXX

                                                                               Accrued Legal Fee a/c   XXX

                                              (Legal Fees Accrued For The Accounting Period)

At the end of the accounting period, when the company actually paid legal fees to the law firm, then the above entry is reversed and legal fee expense paid for cash / bank is recorded.

Accrued Legal Fees is also known as Legal Fees Payable or Outstanding Legal Fees.