Accrued Expenses Debit or Credit
The normal, positive, favorable or usual b ala nce of Accrued Expe nses 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 ...