I n t e r a c t I v e t e X t foundations in Accountancy/ acca financial accounting (ffa/FA) bpp learning Media is an acca approved Content Provider

PART F: PREPARING BASIC FINANCIAL STATEMENTS 

 

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Similarly, if a business has accrued telephone expenses as at 1 July 20X6 of $850, pays $6,720 in 

telephone bills during the year to 30 June 20X7, and has accrued telephone expenses of $1,140 as at 

30 June 20X7, then the telephone expense to be shown in the statement of profit or loss for the year to 

30 June 20X7 is the balancing figure in the following T-account. (Remember that an accrual is a current 

liability, and so is a credit balance b/d.) 

TELEPHONE EXPENSES 

 

$        

$         

Cash 

 

6,720 

 

Balance b/d (accrual) 

 

850 

Balance c/d (accrual) 

 

1,140 

 

P/L a/c (balancing figure) 

 

7,010 

 

 

7,860   

 

7,860 

 

 

 

Balance b/f 

 

1,140