Hanan AK said:
Thanks for your reply.
Yes, you are absolutely right. But as I produce monthly management accounts. when I prepare february P&L statement, 1000 credit appear in water account. Thats odd. How to deal with this?
Can I ask, is this for a client or is this studying stuff?
If the latter then I agree with Sapphire, you will have to go into Jan and post a CR to Water and DR to accruals, bringing the charge to zero for the month. In Feb you will have to do the opposite.
If the former (this is a LIVE client's accounts), then I would agree with HRM. You cannot do anything as presumably the January Mangt accounts have already been reported - therefore you cannnot go back and restate management accounts just because you made a mistake, January is over and you cannot do anything. With management accounts there should always be some commentary i.e in Jan it would be 'bill expected', and in Feb it would be 'bill no longer forthcoming' which would explain your variances. YTD the value would be zero, as Hazel says.