Prior To The Adjusting Process, Accrued Expenses Have Been

 

Prior To The Adjusting Process, Accrued Expenses have been incurred but not paid and recorded in the Books of Accounts.

The adjusting entry is recorded at the end of the accounting period is shown below:

                                    Expenses a/c  XXX

 

                                                          Accrued Expenses a/c  XXX

 

                                                   (Expenses Accrued for the Period)

 

For example, Accrued Salaries of Rs. 50000 shows those salaries which are not paid to employees but these are incurred by the business for the period as the business received the benefits or services for the month but the payment is not made to employees, so it is a current liability of the company’s business to pay to them for the services rendered to company by employees for the month.

Accrued expenses are current liabilities and shown on balance sheet.