Debit or Credit Accrued Expenses?

by Anonymous

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)?

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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