What is the Journal Entry for recording an Accrued Liability?

The Journal Entry for an Accrued Liability is very simple. The Expense Account is debited and the Accrued Liabilities account is credited. In the next period, a reversal entry is made in the beginning itself to neutral the effect. The invoice from the supplier is basically received in the next period and it is entered in the accounting system. The effect of the transactions is:
1. At the end of the first accounting period, a journal entry is made to record the expense.
2. At the beginning of the second period, a reverse entry is made and the invoice from the supplier is entered in the accounting system. Thus, the net effect of these transactions is that expense recognition is shifted forward in time.

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