Entry for prepaid expenses?
- 19 Answers
- 26536 Views
- Genpact, Insurance, Wipro, I also Faced
- E-Mail Answers
Answer Posted / mohammed mandlaywala
Initial Entry
Prepaid Expense A/c
To Bank A/c
Entry at the time of recognition
Expense A/c
To Prepaid Expense A/c
Explanation:
When an expense is paid in advance, the mercantile system
does not permit the recognition of the same in the P/L
Account. Hence its entry is similar to purchase of an asset.
In the year in which the actual expense is recognised
expense acount is debited and the prepaid expense A/c which
was an asset is now credited and removed from the books.
| Is This Answer Correct ? | 6 Yes | 0 No |
Post New Answer View All Answers
define fixed assets
outstanding expenses are the expenses that "unpaid"at the end of the accounting period e.g.salaries rent so they all come to under nominal accounts which is debt all expenses and losses and credit all gains since they are unpaid hence they must be credited
credit card entry in tally
EXPAND_________SDJMC
do we have to learn all the shortcutkeys in tally.i am from non commerce background ,where should i start from.
How can I find out my credit rating score for free?
Dear Sir/Madam, Executive Trainee...Finance I had been called for NTPC Group discussion and GD please guide me for getting success in GD and interview...
Why does one need a broker?
Placed an order with Mani for supply of goods worth Rs.5000/-. state whether the the following transcation is business transcation or non business transcation? with reson or explaination?
we can add the no. of increase in shares due to exercise of options,convertible debentures,warrants etc.Why diluted eps is calculated separately?
Hello... i am looking jobs in investment banking, derivates and BRS and i apply nakuri,Timesjobs and monster. But i did not get the job. so if websites and ID. Please help me.. Thanking u...
How can retify the errors in the trial balance
1) why rbi charges more interest rate in d form of repo while borrowing from commercial banks, and lends at a lower interest rate(reverse repo) to d commercial banks? 2) Do cooperative banks need to maintain policy rates with rbi? 3) why rbi does'nt pay any interest rate on CRR?
Questions on Purchase Book & sales Book .Balance sheet , Purchase & Sales Return
In Oracle Applications will Translation will create any journal entry then what is the journal entry what are the accounts affected
