prepaid expense ,how to treat in profit & loss a/c
Answers were Sorted based on User's Feedback
Answer / sreedhaam
If prepaid expenses are given in the trial balance they are
recorded in the assets side of Balance sheet only. But if
they are given in the adjustments they are subtracted from
concerned expenses in the debit side of profit and loss
account and again are shown in the assets side of Balance
Sheet.
Is This Answer Correct ? | 60 Yes | 3 No |
Answer / sampada
We deduct from respective expenses value in P & l A/c
Is This Answer Correct ? | 38 Yes | 12 No |
Answer / sushil27284
No prepaid expenses will not touch the profit & loss A/c if this will appear in trail balance, but if this prepaid expenses is additional information related to any expenses head then the said prepaid expenses amount will be less from the related expenses head from profit & loss A/c
Is This Answer Correct ? | 8 Yes | 1 No |
Answer / i.c. maurya
the prepaid exp. directly not charged from P/L A/c At the
time of payment we should pass the entry
Dr. prepaid exp
Cr. cash/bank
(being prepaid exp. paid)
when exp. exactly Due we pass the entry
Dr. exp.
Cr prepaid exp.
(being prepaid exp. due and reversed)
this entry effect the P/L(reduce) A/c
Is This Answer Correct ? | 17 Yes | 11 No |
Who is Sundry Debtor and who is the sundry creditor ?
18 Answers Finance, Home, Reliance,
hai everone,can anyone send me the accounting ,finance,general interview questions for mba freshers plz.....urjent
what made you take up present subject/area of specialization and what would you define as your career objectives
Why SAP Fico module is given more importance than Tally & other softwares
What is the suitable method of charging depereciation?
what are all the items comes under balancesheet(liability side & asset side) step by step.& also trading and p&l account. somany companies asking this type of question . please tell me...
7 Answers IBM, IBPS, Thomson Reuters,
what is cash flow statement and fund fund flow statement
what is depriciation, and its method
What is Contingent Liability?
4 Answers State Bank Of India SBI,
What is invoice processing can u explain it?
Please help me with the accounts head for the below ledgers for e.g. for Salary A\c - Indirect Expenses is the account head in tally. what is the account head for below ledgers. Salary A/c Dr. xxx To EPF Payable (employees' contribution only) xx To ESI Payable (employees' contribution only) xx To PT Payable (deducted from employees only) xx To TDS Payable (if deducted from employees' only) xx To Salary Payable (net amount only) xxx Salary A/c Dr. xxx To EPF Payable (employees' contribution only) xx To ESI Payable (employees' contribution only) xx To PT Payable (deducted from employees only) xx To TDS Payable (if deducted from employees' only) xx To Salary Payable (net amount only) xxx Salary Payable A/c Dr. xxx To Cash / Bank A/c xxx
What was the most difficult deal you had to close?