331 – Other Expenses Payable

Current Liabilities

Accrued Liabilities

Synopsis

Account 331

Debits

Credits

  1. Payments made applicable to expenses accrued in this account.

  2. The reversal of the previous month’s accrual.

  3. Any adjustment to reduce the accrual balance to actual liability or based on current estimates.

  1. Monthly accrual for other expenses.

  2. Any adjustment to increase the accrual balance to actual liability.

 

Remarks:

Typical services for which provision should be made include such items as professional legal counsel, audit services of an outside firm, collection agency fees, rent, inventory service, and charitable contributions.

The basis for recording the accrued expense should be realistic and accurate.

Separate general ledger subsidiary accounts may be established (such as 331A, 33B, 331C, etc.) for each expense, or they may be detailed on a prepaid and accrued schedule.  If separate general ledger accounts are used, they should be combined on the Subaru Dealer Financial Statement.

Note: