BOOKKEEPING FOR GRAI2T ELEVATORS. 



21 



U. ACCRUED LIABILITIES. 



Accrued Interest — Notes Payable (Gl). 

 (To bo used only by the larger companlos. See also Interest Account No. X-3.) 



Debit: 



Credit: 



1. With interest payments. 



1. \\'itli the uccrued interest on notes 





payable at the time of opening the 





books as shown by the balance 





sheet. 





2. With the interest accrued divring the 





period on notes payable. (Debit 





Interest account.) 



The balance of this account is the accrued interest on notes payable and should 

 be shown as a liability on the balance sheet. 



Accrued Salaries and Labor {G2). 



Debit: 



Credit: 



1. With the credit balance at the be- 



1. With the amount of unpaid labor at 



giniung of the fiscal period. (Credit 



the time of opening the books as 



correspouding expense account.) 



shown by the balance sheet. 





2. With the amount of unpaid labor at 





the end of the fiscal period. (Debit 





corresponding expense account.) 



Inr order that the Ledger may show the true conditions of the business at the end 

 of the fiscal period, it is necessary that an account or accounts be opened which will 

 exhibit the liability arising from items of expense which have accrued, but "ivhich 

 have not yet become payable. Examples of such items are salaries and wages and 

 taxes. These accruals necessarily constitute a portion of the costs of operation of the 

 fiscal period just closed and therefore should be charged to the expenses for that 

 period. 



Accrued Rent and Taxes {G3). 



Debit: 



Credit: 



1. At the beginning of the fiscal period 



1. With the amount of accrued rent and 



with the credit balance. (Credit 



taxes at the time of opening the 



Kent and Taxes.) 



books as shown by the balance 





sheet. 





2. With the amount of accrued rent and 





taxes at the end of the fiscal pe- 





riod. (Debit corresponding Ex- 





pense account.) 



