Accrual In Accounting

 

1.       Accrual

What is accrual in accounting?

Accrual means the recognition of revenue and expense as they are earned or incurred in the period in which transaction occurs. However, the money received or paid it will be recorded in the transaction period only.

Example: In 2020 A purchased goods of $100 on credit. So, this transaction will be recorded in the period of 2020 only. And will be carry forward in the next financial year till the money get received.