when to use accrual and accounts payable entry?

Answer 1

we show accrued expense when we r not able to make our payment, lets say a Rent on time and need to make adjusments to pay the yr 1995 rent in yr 1996, thus we c/d the balance and thus make an entry in the rent account of accrued c/d.

And accounts payable is a credit entry and while balancing off the balance sheet we make this entry.

Answer 2

Accrual accounting is mandated by the tax code in situations where cost accounting, completed contract accounting, retail sales or such are used in your business. It is almost never used in a service business.
Accrual accounting is often used to track the actual results of a business enterprise as it gives a truer picture of the results of operations than any other method. Some business must use the accrual method for tax purposes others use the cash method.
Accounts payable as well as accounts receivable, prepaid expenses etc. are used in accrual accounting.