Forum

• # 79425
• Wed 08 Feb 2012 01:33 PM

Hi, I have a new client who's last years balance sheet showed an accrual of £1000 for insurance, but having done their accounts for this year there was no payment for insurance made (!) do I need to reverse out the accrual for last year, if so how would I do that?

Thank you, Denise

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• # 79430
• Wed 08 Feb 2012 02:08 PM

Hi Denise

You would need to revser the accrual if it is no longer required.

the first step is to try an ascertain why the accrual was made in the first place I would suspect they were expecting to inccur some sort of insurance cost wether for public and employers liability, motor vehicle or even goods and contents.

If the accural is not required then reverse

Credit accurals with £1000 and debit a corresponding insurance account with the £1000

I hope this helps

Kind regards
Stuart

• Forum Moderator, South East & Greater London Regional Chairman
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• # 79431
• Wed 08 Feb 2012 02:13 PM

Thank you Stuart, you are brilliant!

Denise

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• # 79479
• Thu 09 Feb 2012 02:15 PM

Stuart Wildmansaid:

“Hi Denise

You would need to revser the accrual if it is no longer required.

the first step is to try an ascertain why the accrual was made in the first place I would suspect they were expecting to inccur some sort of insurance cost wether for public and employers liability, motor vehicle or even goods and contents.

If the accural is not required then reverse

Credit accurals with £1000 and debit a corresponding insurance account with the £1000

I hope this helps

Kind regards
Stuart”

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• # 79502
• Thu 09 Feb 2012 09:38 PM

> Lol yes Paula you are right sorry must have had a senior moment.

Well spotted

Kind regards
Stuart
>
>

• Forum Moderator, South East & Greater London Regional Chairman
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• # 79515
• Fri 10 Feb 2012 04:06 AM

Stuart Wildmansaid:

“> Lol yes Paula you are right sorry must have had a senior moment.

Well spotted

Kind regards
Stuart
>
>”

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