Restaurant

Reversal of Prior Month Accrual

Reversing the utility accrual at the start of the new month to avoid double-counting when the actual bill arrives.

Account NameTypeDebit ($)Credit ($)
Accrued LiabilitiesLiability (-)680.00-
Utilities ExpenseExpense (-)-680.00

💡 Accountant's Note

Reversing entries are made on the first day of a new period so that when the actual vendor invoice arrives, the net expense recorded is correct with no double counting.

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