BOOKKEEPING FOK GRAIN" ELEVATORS. 
21 
G. ACCRUED LIABILITIES. 
Accrued Interest — Notes Payable (Gl). 
(To be used only by the larger companies. See also Interest Account No. N-3.) 
Debit: 
Credit: 
1. With interest payments. 
1. With, the accrued interest on notes 
payable at the time of opening the 
books as shown by the balance 
sheet. 
2. With the interest accrued during 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 
ginning of the fiscal period . ( Credi t 
the time of opening the books as 
corresponding 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.) 
In 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 which 
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 
Rent 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.) 
