UK Reversing Journal Entries

[UKFellow]

Hello.

I need to submit adjusting entries (monthly accruals) for rents payable on some of our office spaces. Our Finance dept asked to submit accruals for December 2021 so they can roll into next period i.e. Jan 22. Our rents are paid quaterly so we paid rent on 25th December for Jan-March. It's my first time submitting these entries so I am confused if I should submit a reversing entry for December accrual i.e. 1/3 of rent paid in September for Oct-Dec or the entire amount paid in December to cover Jan-March?

Thank you.

 

[Kat Maple]

Hi UKFellow

As you have a Finance Dept, it makes sense for you to ask them what to do here.

Regards

Kat

 

[Praz Finpoint]

I don't get it - I do not see a need for any adjusting accrual entries as of end of December 2021 since:

1. October to December have been paid in September
2. January to March have been paid in December, recognizing an Advance Payment asset on the Balance Sheet

I don't see a liability required here