Why is "Using the amount paid as the charge" a common mistake in Adjustments for Accrued & Prepaid Expenses?

Why it happens: Ignoring accruals/prepayments. How to avoid it: The charge is the amount RELATING to the year: add accruals, deduct prepayments (matching). Source: 9706 Examiner Reports

Why is "Adding a prepayment / deducting an accrual" a common mistake in Adjustments for Accrued & Prepaid Expenses?

Why it happens: Mixing up the two. How to avoid it: ADD accruals (owing, this year); DEDUCT prepayments (paid in advance for next year). Source: 9706 Examiner Reports

Why is "Putting the accrual/prepayment on the wrong side in the account" a common mistake in Adjustments for Accrued & Prepaid Expenses?

Why it happens: Not classifying asset vs liability. How to avoid it: Prepayment = ASSET (debit balance); accrual = LIABILITY (credit balance). The closing balance b/d sits accordingly. Source: 9706 Examiner Reports

Why is "Forgetting the opening accrual/prepayment" a common mistake in Adjustments for Accrued & Prepaid Expenses?

Why it happens: Only using payments and the closing balance. How to avoid it: Include opening balances: an opening prepayment is added; an opening accrual is deducted in the charge. Source: 9706 Examiner Reports

Why is "Omitting the accrual/prepayment from the SOFP" a common mistake in Adjustments for Accrued & Prepaid Expenses?

Why it happens: Only adjusting the expense. How to avoid it: Show the closing prepayment as a current asset and the closing accrual as a current liability. Source: 9706 Examiner Reports

Why is "Netting an accrual against a prepayment of different expenses" a common mistake in Adjustments for Accrued & Prepaid Expenses?

Why it happens: Combining unrelated items. How to avoid it: Show prepayments (asset) and accruals (liability) separately; do not net them off. Source: 9706 Examiner Reports

Cambridge International A Levels Accounting (9706)

Adjustments for Accrued & Prepaid Expenses

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Detailed Study Notes

Detailed notes on Adjustments to Draft Financial Statements for Cambridge International A Levels Accounting, covering key concepts, explanations, examples, and exam-focused revision points.

Adjustments for Accrued & Prepaid Expenses — Cambridge AS & A Level Accounting 9706 Study Notes (2026-2028)

The matching concept in action. Learn to adjust an expense for amounts owing (accruals) and paid in advance (prepayments), calculate the correct charge to the statement of profit or loss, handle opening balances, and show accruals as liabilities and prepayments as assets.

At a glance

Accrued expense (owing): ADD to the expense; show as a current liability.
Prepaid expense (paid in advance): DEDUCT from the expense; show as a current asset.
The charge to the statement of profit or loss is the amount that relates to the year (matching), not the amount paid.
Charge = paid + opening prepaid − opening accrued − closing prepaid + closing accrued.
Prepare the expense account: the balancing figure is the charge to the statement of profit or loss.
Closing accrual = credit balance (liability); closing prepayment = debit balance (asset).
Applies the matching (accruals) concept.

What you’ll learn

Mapped to the Cambridge International A Level 9706 syllabus (2026-2028).

1.5.1 — Calculate and record the adjustment needed and the effect on the financial statements in respect of accruals and prepayments of expenses.
Prepare expense accounts showing accruals and prepayments.
Show accruals and prepayments in the statement of financial position.

The matching concept and the charge

Charge the amount that relates to the year, not the amount paid.

The matching (accruals) concept requires the expense charged to the statement of profit or loss to be the amount that relates to the year — regardless of when it is paid.

Accrued expense (owing at the year end): the business has used the service but not yet paid. Add it to the charge (and show it as a current liability).
Prepaid expense (paid in advance): the business has paid for next year's service. Deduct it from the charge (and show it as a current asset).

The full formula (allowing for opening balances): $\text{Charge} = \text{Paid} + \text{Opening prepaid} - \text{Opening accrued} - \text{Closing prepaid} + \text{Closing accrued}$

Example. Rent paid $12,000; $1,000 prepaid at the year end → charge = 12,000 − 1,000 = $11,000.

Charge the amount relating to the year, not the amount paid.
Accrued (owing): add to the charge; current liability.
Prepaid (in advance): deduct from the charge; current asset.
Charge = paid + opening prepaid − opening accrued − closing prepaid + closing accrued.

See the full worked example for adjustments for accrued & prepaid expenses →

Preparing the expense account

Enter the balances and payments; the charge to the SOPL is the balancing figure.

Preparing the expense account makes the adjustment clear. The charge to the statement of profit or loss is the balancing figure.

Worked example — insurance account: opening prepaid $300; paid $4,200; closing accrued $250.

Dr	$	Cr	$
Balance b/d (prepaid)	300	Statement of profit or loss	4 750
Bank	4 200
Balance c/d (accrual)	250
	4 750		4 750
		Balance b/d (accrual)	250

Opening prepayment = debit balance b/d (an asset carried in).
Closing accrual = inserted as balance c/d on the debit side; brought down as a credit balance (a liability).
The charge ($4,750) is the balancing figure to the statement of profit or loss.

Charge to the SOPL = the balancing figure of the expense account.
Opening prepayment = debit b/d (asset); opening accrual = credit b/d (liability).
Closing accrual: debit c/d → credit b/d (a liability).
Closing prepayment: credit c/d → debit b/d (an asset).

See the full worked example for adjustments for accrued & prepaid expenses →

Showing accruals and prepayments in the SOFP

Accruals are current liabilities; prepayments are current assets.

At the year end, the closing balances appear in the statement of financial position:

Statement of financial position
Current assets: prepayments (prepaid expenses)	X
Current liabilities: accruals (accrued expenses)	X

A prepayment is a current asset — the business has paid for a benefit it will receive next year.
An accrual is a current liability — the business owes for a benefit it has already received.

So one adjustment touches both statements: it changes the expense (and hence profit) in the statement of profit or loss, and creates an asset or liability in the statement of financial position.

Prepayment = current asset (paid for next year's benefit).
Accrual = current liability (owing for this year's benefit).
The adjustment affects both the SOPL (charge) and the SOFP (asset/liability).
Use the closing balances in the SOFP.

See the full worked example for adjustments for accrued & prepaid expenses →

The effect of getting it wrong

Omitting an accrual overstates profit; omitting a prepayment understates it.

Because accruals and prepayments change the expense, errors misstate profit:

Omitting a closing accrual (an expense owing): the charge is too low → profit overstated; and a liability is missing → net assets overstated.
Omitting a closing prepayment (an expense paid in advance): the charge is too high → profit understated; and an asset is missing → net assets understated.

Each error has a double effect (the expense in the SOPL and the asset/liability in the SOFP), so accuracy matters. The adjustments apply the matching concept to give a true and fair view.

Omitting a closing accrual: profit overstated, liability missing.
Omitting a closing prepayment: profit understated, asset missing.
Each error affects both statements.
Adjustments apply matching for a true and fair view.

See the full worked example for adjustments for accrued & prepaid expenses →

Quick recap

Matching: charge the amount relating to the year, not the amount paid.
Accrued (owing): add to the charge; current liability.
Prepaid (in advance): deduct from the charge; current asset.
Charge = paid + opening prepaid − opening accrued − closing prepaid + closing accrued.
In the expense account, the charge to the SOPL is the balancing figure.
Omitting an accrual overstates profit; omitting a prepayment understates it.

Memorise this

Verbatim phrases and definitions Cambridge mark schemes credit.

Accrued expense: ADD to the charge; current LIABILITY.
Prepaid expense: DEDUCT from the charge; current ASSET.
Charge = paid + opening prepaid − opening accrued − closing prepaid + closing accrued.
The charge to the SOPL is the balancing figure of the expense account.

How it’s examined

Tested on Paper 2 and Paper 3 as part of preparing financial statements: calculate the correct charge, prepare an expense account, and show accruals/prepayments in the SOFP (often embedded in a larger statement; sometimes a standalone account). Examiner reports note candidates mixing up the sides and using the amount paid as the charge.

Sources: Cambridge International AS & A Level Accounting 9706 syllabus (2026-2028); 9706 Paper 2 & Paper 3 past papers & mark schemes, 2022-2024; 9706 Examiner Reports, 2022-2024. Last reviewed 2026-06-17.

Take this whole topic with you

Step-by-step worked examples — Adjustments for Accrued & Prepaid Expenses

Step-by-step solutions to past-paper-style questions on adjustments for accrued & prepaid expenses, written exactly the way a tutor would explain them at the board.

Question type:

1Charge with a closing prepayment (3 marks)
Getting startedMulti-step problem• 9706 Paper 2 style• prepayment, AO2
Question
Insurance paid during the year was $5,400. At the year end,$ 600 of insurance was prepaid. Calculate the insurance charge to the statement of profit or loss. (3 marks)
Step-by-step solution
1. Step 1
  Prepaid (paid in advance) is deducted: 5,400 − 600.
2. Step 2
  = $4,800 charged to the statement of profit or loss.
3. Step 3
  The $600 prepayment is a current asset in the statement of financial position.
Answer
Insurance charge = $4,800 (prepayment$ 600 is a current asset).
Examiner tip
Deduct a closing prepayment; it is not part of this year's expense.
2Charge with a closing accrual (3 marks)
Getting startedMulti-step problem• accrual, AO2
Question
Wages paid during the year were $38,000. At the year end,$ 1,500 of wages was owing. Calculate the wages charge to the statement of profit or loss. (3 marks)
Step-by-step solution
1. Step 1
  Accrued (owing) is added: 38,000 + 1,500.
2. Step 2
  = $39,500 charged to the statement of profit or loss.
3. Step 3
  The $1,500 accrual is a current liability.
Answer
Wages charge = $39,500 (accrual$ 1,500 is a current liability).
Examiner tip
Add a closing accrual; it relates to this year even though unpaid.
3Charge with opening and closing balances (5 marks)
Building confidenceMulti-step problem• accrual, prepayment, AO2
Question
Rent: opening accrual $400; paid during the year$ 9,600; closing prepayment $700. Calculate the rent charge to the statement of profit or loss. (5 marks)
Step-by-step solution
1. Step 1
  Charge = paid − opening accrued − closing prepaid.
2. Step 2
  = 9,600 − 400 (opening accrual now paid) − 700 (closing prepayment).
3. Step 3
  = $8,500.
Answer
Rent charge = $8,500.
Examiner tip
Deduct the opening accrual (it was last year's) and the closing prepayment.
4Prepare the expense account (5 marks)
Building confidenceMulti-step problem• expense account, AO2
Question
Prepare the insurance account: opening prepaid $250; paid$ 3,900; closing accrual $180. Find the charge to the statement of profit or loss. (5 marks)
Step-by-step solution
1. Step 1
  Debit: balance b/d (prepaid) 250; bank 3,900; balance c/d (accrual) 180 = 4,330.
2. Step 2
  Credit: the balancing figure to the statement of profit or loss = $4,330.
3. Step 3
  The $180 accrual is brought down as a credit balance (a liability).
Answer
Charge to the SOPL = $4,330 (= 3,900 + 250 + 180); accrual$ 180 carried forward.
Examiner tip
The charge is the balancing figure; opening prepaid is a debit, closing accrual a debit c/d.
5Show the balances in the SOFP (4 marks)
Building confidenceIdentify & classify• SOFP, AO2
Question
At the year end a business has rent prepaid $700 and electricity owing$ 300. State how each appears in the statement of financial position. (4 marks)
Step-by-step solution
1. Step 1
  Rent prepaid $700 → a prepayment, a current asset.
2. Step 2
  Electricity owing $300 → an accrual, a current liability.
3. Step 3
  Prepayments are added to current assets; accruals to current liabilities.
Answer
Rent prepaid $700 = current asset; electricity owing$ 300 = current liability.
Examiner tip
Prepayment = asset; accrual = liability.
6Charge with all four elements (6 marks)
StretchMulti-step problem• accrual, prepayment, AO2
Question
Electricity: opening prepaid $200; opening accrual$ 0; paid $7,400; closing accrual$ 350. Calculate the charge to the statement of profit or loss. (6 marks)
Step-by-step solution
1. Step 1
  Charge = paid + opening prepaid − opening accrued − closing prepaid + closing accrued.
2. Step 2
  = 7,400 + 200 − 0 − 0 + 350.
3. Step 3
  = $7,950.
Answer
Electricity charge = $7,950.
Examiner tip
Opening prepaid is added (it was used this year); closing accrual is added.
7Effect of omitting an accrual (5 marks)
StretchWord problem• effect, AO2
Question
A business omitted a closing accrual for wages of $1,200. Explain the effect on the financial statements. (5 marks)
Step-by-step solution
1. Step 1
  The wages charge is too low by $1,200 → profit overstated by $1,200.
2. Step 2
  The accrual (a current liability) is missing → liabilities understated by $1,200.
3. Step 3
  The overstated profit raises capital by $1,200.
4. Step 4
  So net assets are overstated (liabilities too low / capital too high).
5. Step 5
  It breaches the matching concept (the cost belongs to this year).
Answer
Profit overstated $1,200; current liabilities understated$ 1,200; capital overstated $1,200 — breaching matching.
Examiner tip
Omitting an accrual overstates profit and omits a liability.
8Work back to the amount paid (5 marks)
StretchMulti-step problem• expense account, AO2
Question
The rent charge to the statement of profit or loss was $10,000. There was an opening prepayment of$ 500 and a closing accrual of $400. Calculate the rent actually paid during the year. (5 marks)
Step-by-step solution
1. Step 1
  Charge = paid + opening prepaid − closing prepaid + closing accrual − opening accrual.
2. Step 2
  10,000 = paid + 500 + 400 (no closing prepaid or opening accrual).
3. Step 3
  Paid = 10,000 − 500 − 400 = $9,100.
Answer
Rent paid = $9,100.
Examiner tip
Rearrange the charge formula to make 'paid' the subject.
9Concept behind the adjustment (4 marks)
StretchWord problem• matching, AO3
Question
Explain, with reference to an accounting concept, why a business adjusts its expenses for accruals and prepayments. (4 marks)
Step-by-step solution
1. Step 1
  The matching (accruals) concept requires expenses to be charged to the period they relate to, not when paid.
2. Step 2
  An accrual brings in a cost incurred but not yet paid this year.
3. Step 3
  A prepayment removes a cost paid in advance for next year.
4. Step 4
  This gives a fair measure of this year's profit and correct assets/liabilities.
Answer
Matching: charge expenses to the period they relate to (add accruals, remove prepayments) for a fair profit.
Examiner tip
Name matching and apply it to both the accrual and the prepayment.
10Adjust two expenses (6 marks)
StretchMulti-step problem• accrual, prepayment, AO2
Question
Insurance: paid $4,800; closing prepayment$ 400. Rent: paid $13,200; closing accrual$ 1,100. Calculate the total amount charged to the statement of profit or loss for these two expenses. (6 marks)
Step-by-step solution
1. Step 1
  Insurance charge = 4,800 − 400 = $4,400.
2. Step 2
  Rent charge = 13,200 + 1,100 = $14,300.
3. Step 3
  Total = 4,400 + 14,300 = $18,700.
Answer
Total charge = $18,700 (insurance$ 4,400 + rent $14,300).
Examiner tip
Deduct prepayments; add accruals. Treat each expense separately.

Model Answers — Adjustments for Accrued & Prepaid Expenses

High-scoring sample answers for adjustments for accrued & prepaid expenses on the Cambridge IGCSE paper, with examiner-style notes mapping each response to the mark scheme and assessment objectives.

Question 1
9706 Paper 2 style3 marks
Q (3 marks). Insurance paid during the year was $6,000, of which$ 500 relates to next year. Calculate the insurance charge to the statement of profit or loss and state where the $500 appears in the statement of financial position.
Model answer
Charge = 6,000 − 500 = $5,500. The $500 prepayment is shown as a current asset in the statement of financial position.
Why this scores
Marking (point-based, 3). Deduct prepayment (1); charge $5,500 (1); current asset (1).
Question 2
9706 Paper 2 style3 marks
Q (3 marks). Electricity paid during the year was $7,200, and$ 400 is owing at the year end. Calculate the electricity charge and state where the $400 appears.
Model answer
Charge = 7,200 + 400 = $7,600. The $400 accrual is shown as a current liability in the statement of financial position.
Why this scores
Marking (point-based, 3). Add accrual (1); charge $7,600 (1); current liability (1).
Question 3
9706 Paper 2 style5 marks
Q (5 marks). Rent: opening accrual $600; paid during the year$ 14,400; closing prepayment $900. Calculate the rent charge to the statement of profit or loss.
Model answer
Charge = paid − opening accrual − closing prepayment = 14,400 − 600 − 900 = $12,900.

(The opening accrual of $600 related to last year and was paid this year; the closing prepayment of $900 relates to next year.)
Why this scores
Marking (point-based, 5). Method (1); deduct opening accrual $600 (1.5); deduct closing prepayment$ 900 (1.5); charge $12,900 (1).
Question 4
9706 Paper 2 style5 marks
Q (5 marks). Prepare the rent payable account and find the charge to the statement of profit or loss: opening accrual $700; paid by cheque$ 11,500; closing accrual $900.
Model answer
Rent payable account

Dr $ Cr $
Bank 11 500 Balance b/d (accrual) 700
Balance c/d (accrual) 900 Statement of profit or loss 11 700
12 400 12 400
Balance b/d (accrual) 900

Charge to the statement of profit or loss = $11,700 (= 11,500 + 900 − 700).
Why this scores
Marking (point-based, 5). Opening accrual credit b/d $700 (1); bank debit (1); closing accrual c/d$ 900 (1); SOPL charge $11,700 (2).
Question 5
9706 Paper 2/3 style6 marks
Q (6 marks). Insurance: opening prepayment $300; paid during the year$ 5,200; closing accrual $250. Calculate (a) the charge to the statement of profit or loss and (b) state how the closing accrual appears in the statement of financial position.
Model answer
(a) Charge = paid + opening prepayment + closing accrual = 5,200 + 300 + 250 = $5,750. (The opening prepayment of $300 was used this year; the closing accrual of $250 relates to this year but is unpaid.)

(b) The $250 closing accrual is shown as a current liability in the statement of financial position.
Why this scores
Marking (point-based, 6). Add opening prepayment $300 (1.5); add closing accrual$ 250 (1.5); charge $5,750 (2); accrual as current liability (1).
Question 6
9706 Paper 3 style5 marks
Q (5 marks). A business omitted a closing prepayment for insurance of $900 from its draft financial statements. Explain the effect of this omission.
Model answer
By omitting the closing prepayment, the insurance charge is too high by $900, so profit is understated by $900.

In the statement of financial position, the prepayment (a current asset) is missing, so current assets are understated by $900. The understated profit reduces capital, so capital (net assets) is understated by $900.

The omission therefore understates both profit and net assets by $900, breaching the matching concept (part of the cost belongs to next year, not this one).
Why this scores
Marking (point-based, 5). Charge too high → profit understated $900 (2); current asset missing (1.5); capital understated$ 900 / matching (1.5).
Question 7
9706 Paper 3 style5 marks
Q (5 marks). The wages charge in the statement of profit or loss is $42,000. There was an opening accrual of$ 1,000 and a closing accrual of $1,400. Calculate the wages actually paid during the year.
Model answer
Charge = paid − opening accrual + closing accrual 42,000 = paid − 1,000 + 1,400 Paid = 42,000 + 1,000 − 1,400 = $41,600.

(Check: 41,600 − 1,000 (opening accrual paid) + 1,400 (closing accrual) = 42,000 ✓.)
Why this scores
Marking (point-based, 5). Set up the relationship (2); rearrange for paid (2); $41,600 (1).
Question 8
9706 Paper 2/3 style4 marks
Q (4 marks). Explain, with reference to an accounting concept, why insurance paid in advance is not all charged as an expense in the year it is paid.
Model answer
The matching (accruals) concept requires an expense to be charged to the period it relates to, not simply the period in which it is paid.

Insurance paid in advance relates to next year's cover, so that portion has not yet been used to earn this year's revenue. It is therefore removed from this year's charge (deducted) and carried forward as a prepayment (current asset), to be charged in the year it relates to. This gives a fair measure of each year's profit.
Why this scores
Marking (point-based, 4). Matching — expense to the period it relates to (~2); prepayment relates to next year, carried forward as an asset (~2).
Question 9
9706 Paper 3 style6 marks
Q (6 marks). Calculate the total charge to the statement of profit or loss for these expenses: rent — opening prepayment $500, paid$ 12,000, closing accrual $800; insurance — paid$ 4,400, closing prepayment $300.
Model answer
Rent: charge = 12,000 + 500 (opening prepayment used) + 800 (closing accrual) = $13,300.

Insurance: charge = 4,400 − 300 (closing prepayment) = $4,100.

Total charge = 13,300 + 4,100 = $17,400.
Why this scores
Marking (point-based, 6). Rent $13,300 (3); insurance$ 4,100 (2); total $17,400 (1).
Question 10
9706 Paper 2 style2 marks
Q (2 marks). Distinguish between an accrued expense and a prepaid expense, stating how each appears in the statement of financial position.
Model answer
An accrued expense is an amount owing at the year end (incurred but not paid) — a current liability. A prepaid expense is an amount paid in advance for the next period — a current asset.
Why this scores
Marking (point-based, 2). Accrual = owing/current liability (1); prepayment = paid in advance/current asset (1).

Dr	$	Cr	$
Bank	11 500	Balance b/d (accrual)	700
Balance c/d (accrual)	900	Statement of profit or loss	11 700
	12 400		12 400
		Balance b/d (accrual)	900

Key Definitions and Keywords — Adjustments for Accrued & Prepaid Expenses

Definitions to memorise and the exact keywords mark schemes credit for adjustments for accrued & prepaid expenses answers — sharpened from recent examiner reports for the 2026 Cambridge IGCSE sitting.

Accrued expense (accrual)
Examiner keyword
An expense incurred but not yet paid at the year end; added to the charge and shown as a current liability.
Prepaid expense (prepayment)
Examiner keyword
An expense paid in advance for the next period; deducted from the charge and shown as a current asset.
Charge to the statement of profit or loss
Examiner keyword
The amount of an expense relating to the year (matching) — the balancing figure of the expense account, not necessarily the amount paid.
Matching (accruals) concept
Examiner keyword
The concept requiring expenses to be recognised in the period they relate to, regardless of when cash is paid.
Current liability (accrual)
An amount owed at the year end (e.g. an accrued expense), due within one year, shown in the statement of financial position.
Current asset (prepayment)
An amount paid in advance at the year end (e.g. a prepaid expense), benefiting the next year, shown in the statement of financial position.

Common Mistakes and Misconceptions — Adjustments for Accrued & Prepaid Expenses

The traps other students keep falling into on adjustments for accrued & prepaid expenses questions — taken from recent Cambridge IGCSE examiner reports and mark schemes — and how to avoid them.

✕Using the amount paid as the charge
9706 Examiner Reports
Why it happens
Ignoring accruals/prepayments.
How to avoid it
The charge is the amount RELATING to the year: add accruals, deduct prepayments (matching).
✕Adding a prepayment / deducting an accrual
9706 Examiner Reports
Why it happens
Mixing up the two.
How to avoid it
ADD accruals (owing, this year); DEDUCT prepayments (paid in advance for next year).
✕Putting the accrual/prepayment on the wrong side in the account
9706 Examiner Reports
Why it happens
Not classifying asset vs liability.
How to avoid it
Prepayment = ASSET (debit balance); accrual = LIABILITY (credit balance). The closing balance b/d sits accordingly.
✕Forgetting the opening accrual/prepayment
9706 Examiner Reports
Why it happens
Only using payments and the closing balance.
How to avoid it
Include opening balances: an opening prepayment is added; an opening accrual is deducted in the charge.
✕Omitting the accrual/prepayment from the SOFP
9706 Examiner Reports
Why it happens
Only adjusting the expense.
How to avoid it
Show the closing prepayment as a current asset and the closing accrual as a current liability.
✕Netting an accrual against a prepayment of different expenses
9706 Examiner Reports
Why it happens
Combining unrelated items.
How to avoid it
Show prepayments (asset) and accruals (liability) separately; do not net them off.

Adjustments for Accrued & Prepaid Expenses

Detailed Study Notes

At a glance

What you’ll learn

Quick recap

Memorise this

How it’s examined

Take this whole topic with you

1Charge with a closing prepayment (3 marks)

2Charge with a closing accrual (3 marks)

3Charge with opening and closing balances (5 marks)

4Prepare the expense account (5 marks)

5Show the balances in the SOFP (4 marks)

6Charge with all four elements (6 marks)

7Effect of omitting an accrual (5 marks)

8Work back to the amount paid (5 marks)

9Concept behind the adjustment (4 marks)

10Adjust two expenses (6 marks)

Accrued expense (accrual)

Prepaid expense (prepayment)

Charge to the statement of profit or loss

Matching (accruals) concept

Current liability (accrual)

Current asset (prepayment)

✕Using the amount paid as the charge

✕Adding a prepayment / deducting an accrual

✕Putting the accrual/prepayment on the wrong side in the account

✕Forgetting the opening accrual/prepayment

✕Omitting the accrual/prepayment from the SOFP

✕Netting an accrual against a prepayment of different expenses