Module 5

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📌 BOOTCAMP MODULE 05

Month-End Closing & Adjustments

Watch the tactical walkthrough below, read through your 30 professional refresher cards, and execute the complete service sector case study scenario.

📌 MASTER THE ACCOUNTING SOFTWARE WORKFLOW FOR BUSINESSES

BUSINESS CASE STUDY

Business Type: Business Advisory & Consulting Firm

Services Offered: Business Registration Services, Financial Advisory, Training & Workshops

OBJECTIVE

You have completed your day-to-day transactions and are now performing the March month-end accounting routine. You will use journal entries to ensure that income, expenses, assets and liabilities are correctly recognized in the appropriate accounting period.

Now you will execute:

  • 👉 Record accrued expenses
  • 👉 Recognize accrued salaries
  • 👉 Record accrued revenue
  • 👉 Adjust prepaid expenses
  • 👉 Record depreciation
  • 👉 Recognize earned revenue from customer advances
  • 👉 Correct accounting errors
  • 👉 Accrue earned bank interest

👉 SCENARIO 1: ACCRUED EXPENSE (UNPAID UTILITIES)

Transaction: Electricity was consumed during March, but the invoice has not yet been received.

Estimated Amount: ₦45,000

Period: March 31, 2026

TASKS:

  1. Record accrued utilities expense
  2. Recognize the related liability as an accrued payable
LEARNING: Expense recognition under the accrual basis & Matching principle — the expense belongs to the current period even though the invoice has not been received

👉 SCENARIO 2: ACCRUED SALARIES

Transaction: Staff worked throughout March but will be paid on April 5, 2026.

Amount: ₦250,000

TASKS:

  1. Record salary accrual at month-end
  2. Reverse the accrual in the next period when the salary is paid
LEARNING: Recognizing employee benefits incurred but unpaid & Correct period expense allocation

👉 SCENARIO 3: ACCRUED REVENUE (EARNED BUT NOT BILLED)

Transaction: Consulting services were delivered in March, but the invoice has not yet been issued.

Revenue Earned: ₦180,000

TASKS:

  1. Record accrued revenue
  2. Create the related receivable
LEARNING: Revenue recognition before billing & Increasing assets through earned but unbilled income

👉 SCENARIO 4: PREPAID EXPENSE ADJUSTMENT

Transaction: Insurance was prepaid for 12 months in January 2026.

Monthly Allocation: ₦30,000

TASKS:

  1. Recognize the March portion of insurance expense
  2. Reduce the prepaid insurance asset
LEARNING: Expense allocation over time & Asset conversion to expense

👉 SCENARIO 5: DEPRECIATION ENTRY

Transaction: Office equipment was purchased for ₦1,200,000.

Useful Life: 5 years

Depreciation Method: Straight-line

Monthly Depreciation: ₦20,000

TASKS:

  1. Record depreciation expense for March
  2. Record the corresponding accumulated depreciation
LEARNING: Asset value reduction over time & Non-cash expense recognition

👉 SCENARIO 6: UNEARNED REVENUE ADJUSTMENT

Transaction: A customer paid ₦300,000 in advance for a 3-month service in February 2026.

Monthly Recognition: ₦100,000

TASKS:

  1. Recognize the March revenue portion of ₦100,000
  2. Reduce the deferred revenue liability
LEARNING: Revenue is earned gradually & A liability becomes income as the service obligation is fulfilled

👉 SCENARIO 7: EXPENSE CORRECTION (ADJUSTMENT ENTRY)

Situation: Office rent was recorded as ₦200,000, but the actual invoice is ₦180,000.

Required Adjustment: Reduce the recorded expense by ₦20,000.

TASK:

  1. Adjust the office rent expense downward by ₦20,000
  2. Correct the related payable or expense account
LEARNING: Error correction in accounting records & Ensuring accurate financial reporting

👉 SCENARIO 8: BANK INTEREST ACCRUAL

Transaction: Bank interest was earned on the savings account but has not yet been credited by the bank.

Estimated Interest: ₦12,000

TASKS:

  1. Record interest receivable
  2. Recognize interest income
LEARNING: Income recognition even without cash receipt & Asset creation from earned income

📊 FINAL TASK

For each of the scenarios above, prepare the appropriate journal entry using the accounting software.

INSTRUCTIONS:

  1. Go to the Accounting module.
  2. Open the Journal Entry section.
  3. Review each scenario and determine the appropriate debit and credit accounts.
  4. Select the appropriate accounts from the Chart of Accounts.
  5. If an appropriate account is not available, create it under the correct account category.
  6. Enter the correct transaction date and amount.
  7. Confirm that total debits equal total credits.
  8. Review each journal entry carefully.
  9. Do not post the journal entries.
  10. Take a screenshot of each completed journal entry and share it in the group.
LEARNING: Applying accrual accounting, adjusting entries, double-entry principles and month-end accounting procedures using accounting software

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