A Settlement /Compensation agreement has been signed in Jan, however the 9x payments are not due to be paid for 3 months (Apr), Im pondering the best way to post this into the accounts, any sugestions
Assuming that there are no performance conditions, the liability to make the payment exists from the point where the contract is signed. At the date of signing you have a double entry that is Dr Staff costs Cr Accruals. When the payments are made it's Dr Accruals Cr Bank.
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Assuming that there are no performance conditions, the liability to make the payment exists from the point where the contract is signed. At the date of signing you have a double entry that is Dr Staff costs Cr Accruals. When the payments are made it's Dr Accruals Cr Bank.
Thanks Mike. I appropriate your reply