medium10 pts · first answer countsaccrualsmonth-end-close
Effect of a reversing accrual
At 31 March an electricity accrual of ₹40,000 is booked and set to reverse on 1 April. In April, the actual bill of ₹42,000 for March arrives and is booked as electricity expense. What is the net effect on April’s electricity expense from these two entries?
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