prepaid expense ,how to treat in profit & loss a/c
- 4 Answers
- 35007 Views
- I also Faced
- E-Mail Answers
Answer Posted / 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 |
Post New Answer View All Answers
what is gl a/c? & why is it maintain
Mention whether the account "cash" will be credited or debited when a company pays a bill?
what are the different methods of teaching share and debenture to pre degree students
wht is different between defered tax liablities and defered tax assets??????
What is accounting & why it is used?
For example for formation of a new company/offshore company you need to show paid up capital of 100K but you don't have 100K you as a director borrow loan of 100K from 3rd party and deposit in the bank as paid up capital and issued shares of 100K in director name. After one week you return back 3rd part loan. What are the entries in the books?
How can you made payment when bill come from vendor, what is the bills have you check.
what is the difference b/w gain and profit?
What is the meaning of scrap value in accounting?
Explain me what is general ledger account?
what is the entry to be made for vat when any purchase is made in that bill vat amount is included ?
what is windows dressing final accounts?,sales a/c belongs to which a/c type?
what will be the possible question for an interview in account post as a fresher
how to prepare for accontant examinations
What is an adjusting journal entry?
