The Journal Entry To Record An Accrued Revenue Or Accrued Expense Results In Which Of The Following Types Of Accounts Being Debited And Credited?

Adjusting Journal Entry To Record An Accrued Revenue Or Accrued Expenses Results In Which Two Accounts / Adjusting Journal Entries For Accrued Revenue And Accrued Expenses In Accounting

Asset Account and Income Account as the revenue earned by the business / corporation but the payment is not yet received for the accounting period. The journal entry is to debit Accrued Income or Accrued Revenue and credit the relevant revenue account. When the corporation actually received the payment by cash or check, we debit cash account and credit accrued revenue account and the net result, we have is cash account (debited) and revenue account (credited).

The Journal Entry To Record An Accrued Expense Results In Which Of The Following Types Of Accounts Being Debited And Credited

Expense Account and Liability Account as the expense incurred by the business / corporation is still not paid for cash during the period. So, we debit expense account and credit liability account (Accrued Expense Account). When the company or corporation actually paid the expense account for cash or through check / cheque, then we debit relevant expense account and credit cash account and the net result is that we have in the journal entry, the expense account (debited) and the cash account (credited).