pre paid expense is a asset?where it should be posted.

Answer Posted / monu aggarwal

It should be posted under the head of miscellaneous
wxpenditure.Becose it will use in kist.it will be show in
the balance sheet in asset side.
under current asset-sundery debtors,bank account,cash in
hand etc.

Is This Answer Correct ?    2 Yes 6 No



Post New Answer       View All Answers


Please Help Members By Posting Answers For Below Questions

What is difference vat

1652


when an amountis declared as NPA by a bank whether any interest can be debited to that account after the date it is declared as NPA ? What are the guidelines of Reserve Bank of India in this respect ?

2071


What is journalizing?

672


Do you know what is liabilities and what all does include in current liabilities?

595


What is the provision? What is the entry for provision?

592






Explain me some of the examples for liability accounts?

618


What is the difference between General Ledger and Ledger?

912


Who is the sundry creditors

1125


What does the abbreviation dr mean in accounting?

628


Describe yourself briefly why you are outstanding for this post "Finance Coordinator"?

1785


Sir, Now, i am purchasing ply wood, board, and other material for my office furniture. But now the furniture is incomplete so what would be the journal entry for this exp. in book.

1504


Differentiate between provision and reserve?

646


Cost Accounting

1667


Is there Disqualification of Auditor u/s 139 of Companies Act 2013 if the auditor is indebted towards the company to be appointed as an auditor, if amount exceeds more than Rs.1000 as against the provision related to Companies Act, 1956 ?

1293


DHPL is a small sized firm manufacturing hand tools. It manufacturing plan is situated in haryana. The company's sales in the year ending on 31st march 2007 were Rs.1000 million(Rs.100 crore) on an asset base of Rs.650 million. The net profit of the company was Rs.76 million. The management of the company wants to improve profitability further. The required rate of the company is 14 percent.The company is currently considering an investment proposal. One is to expand its manufacturing capacity. The estimated cost of the new equipment is Rs.250 million. It is expected to have an economic life of 10 years. The accountant forecasts that net cash inflows would be Rs.45 million per annum for the first three years, Rs.68 million per annum from year four to year eight and for the remaining two years Rs.30 million per annum. The plant can be sold for Rs.200 million: (a) The company can borrow funds from a nationalized bank at the interest rate of 14 percent for 10 years. It will be required to pay equal annum installment of interest and repayment of principal. (b) A financial institution has offered to lend money to DHPL at 13.5 per annum but it needs to pay equated quarterly installment of interest and repayment of principal. Questions: (1) Should the company expand its capacity? show the computation of NPV. (2) What is the annual installment of bank loan? (3) calculate the quarterly installment of the financial institution loan. (4) should the company borrow from the bank of from the financial institution?

2563