Consulting Fees Accrual Journal Entry

Accrued Consulting Fees Or Outstanding Consulting Fees Journal Entry

If the company received the consulting services in advance, then it is payable by the company to consulting company for the accounting period. In that case, consulting fees is recorded in the Books of Accounts but still the payment is not made so it is accrued for the period.

The following adjusting entry is recorded for accrued consulting fees:

                            Consulting Fees Expense a/c  XXX

                                                                           Accrued Consulting Fees a/c  XXX

                                                     (Consulting Fees Accrued For The Period)

At the end of the month, the above adjusting entry is reversed. Also, when the the company actually paid consulting fees for cash / bank, then:

                                   Consulting Fees Expense a/c  XXX

 

                                                                                  Cash a/c / Bank a/c  XXX

                                                     (Consulting Fees Paid For Cash / Bank)

 

Accrued Consulting Fees is a Current Liability for the company’s business and it is shown on the Balance Sheet.

Accrued Consulting fees is also called Consulting Fees Payable and Outstanding Consulting Fees.