Convert a period's cash payments into the correct accruals-basis charge to profit and loss, tracking the opening and closing prepayment asset and accrual liability.
Données vérifiées · July 2026
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Accruals accounting matches expenses to the period they relate to, not the period cash is paid or received. A prepayment arises when cash has been paid in advance of the period it covers (recorded as an asset until the period arrives), while an accrual arises when a cost has been incurred but not yet invoiced or paid (recorded as a liability). Adjusting cash paid in the period for the opening and closing prepayment and accrual balances gives the correct charge to the profit and loss account.
£24,000 cash paid for insurance, with £6,000 opening prepayment and £8,000 closing prepayment: the period charge to profit and loss is £22,000, £2,000 less than cash paid.
Enter the cash paid for the expense during the period.
Enter the opening and closing prepayment balances (amounts paid in advance).
Enter the opening and closing accrual balances (amounts owed but not yet paid).
Read the adjusted charge to profit and loss, and the resulting balance sheet asset and liability.
Last data update
July 7, 2026
Sources and references
FRC — FRS 102 Section 2 (Concepts and Pervasive Principles, accruals basis); ACCA Financial Accounting (FA), accruals and prepayments adjustments.
The data in this calculator is updated regularly to reflect the latest official rates. When in doubt, consult the official sources listed above.
If the closing prepayment is higher than the opening prepayment, more cash was paid in advance for future periods than was released this period — the excess stays on the balance sheet as an asset rather than hitting profit and loss.
Leave the prepayment fields at zero — the calculator adjusts cash paid only for the accrual movements you enter, giving the correct accruals-basis charge from those figures alone.