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 |
how will calculate gratuity.
what is the capital expenditure
What is Fund Flow and how to prepare that?
What is the below line item and above line item and where this terminology is used?
Purchased good from Sreenivasan company for personal use Rs.50000 What is journal entry
HOW PASS A TDS DUE ENTRY
what is special purpose ledger in SAP.. is it required to configure in ECC 6.0 since New GL concept is active?
Tell me what is accrual accounting?
what show in balance sheet after deduct last depreciation of assets
Who uses accounting?
matching concept
when we file Vat audit report