u mean this?
_________ accrued expenses
_______________
Date
$
Date
$
Bal b/d x
Profit and
Loss x+y
Bal
c/d
(accrued y
expenses)
(total)
(total)
Bal
b/d
y
For prepaid expenses, the bal c/d (prepaid exp) will be below
"profit and loss". As the expense is not yet incurred (used), it
will be at the credit side instead.
The accrual concept: " Expenses are taken into account when they
are incurred and revenues are done so when they are earned (money
isnt necessarily received)"
Revenues are credit nature so the bal b/d before adjustments is
at the credit side. Similarly, the bal c/d (accrued revenue, earned
but money not received) will be below it.