How does accrual accounting treat expenses?



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hello sir.i had a doubt in the expense recognition. you had explained that the expense of 1 lakh in accural accounting will be distributed uniformly.but in case if IT companies let us consider the electricity bill which will differ pre and post holidays in a month(ex: Diwali).then how to project the electricity expenses which will not be uniform.

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Sangram, Expense recognition is used when advanced payments are made for work or usage for later months. Electricity bills are paid monthly and they cover only that months electricity usage and hence there is no need to break them down into various months.

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