Debit or Credit Accrued Expenses?

by Anonymous
(Unknown)

Q: If the amount has been debited into accrued expenses, do we need to credit it after making the payment (so that the balance would be zero in accrued expenses)?

A:
Accrued expenses is a liability account. It is not an expense. Accrued means "is/are owed" or "owing".

Therefore, when you record an expense owing, you do the following:
Debit expense
Credit accrued expenses

When you make the payment you record:
Debit accrued expense
Credit bank

Check out the lesson on accrued expenses (includes a nice example) for a full explanation of the debit and credit. Also check out accrued expenses - part 2 after that one for a full explanation of what happens when you pay the accrued expense.

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