What are the journal entries for accrual accounting and cash accounting for an invoice and a payment?
Accrual accounting and cash accounting for recording an invoice and a payment are very different and care needs to be taken as to not confuse the two. Under accrual accounting, the invoice would be recorded as a debit to your expense account and a credit to the payable account, such as accounts payable. When the payment is recorded, the debit is to the accounts payable for the bill and a credit to the cash account when the check is written. Under cash accounting, no entry is made for the invoice. However, when the payment is made it is a debit to the expense account and a credit to the cash account. Hope this helps.
