These two terms are often interchanged, however, there is a distinct difference.  

A debtor and / or creditor that is booked into the accounts will have an invoice or another form of substantive documentation.

An accrual on the other hand will not.  It is usually amount calculated by the accountant.

For example:    

Debtor / Creditor

A supplier may issue an invoice at the end of the financial year.  This will form part of the trade creditors balance in the balance sheet and be an expense in the profit and loss statement.

Accrual

The business may have a loan to finance working capital.  Generally interest is charged monthly however it can be calculated daily.  Therefore interest would accrue on the loan at the end of the financial year.  This would form part on the accrued interest payable in the balance sheet and interest expense in the profit and loss statement.  

If you would like to discuss further please contact us:
McNamara and Co - Chartered Accountants, located minutes from the Melbourne CBD
www.mcnamaraandcompany.com.au/contact-us
Phone +61 3 9428 1062
Email admin@mcnamaraandco.com

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