Answer / sunil

When the prepaid exp is paid, the entry would be

Prepaid exp A/c Dr
To Cash A/c

And when it is reversed the entry would be

Expense a/c Dr
To Prepaid Exp A/c

Answer / zuheb

Prepaid expenses a/c dr
To cash a/c

Answer / kartik

preepaid Expense A/c Dr

To Cash/Vender

Answer / satyanarayanaraju

Mr Veerender saab entry is correct. But clasification is
wrong. It will come under Assets side. All debit balances
will be placed under assets side.

Answer / santoh kumr.v

prepaid expence a/c Dr

To cash a/c
It will come to Asset side in Balance sheet

Answer / sowmya

the answer given by mr.saravanan is perfectly right

Answer / bharath chowdary

Prepaid expenses it is an expense paid in advance. if it is
asked in Trail balance only it would take place in the
Current assets, the case in other if it is asked in the
adjustments it's supposed to be debited to P&L account and
should be shown in the balance sheet in Assets head as a
current asset.

Answer / karthic.v phone:9884655491

for instant :rent for the month of jan - dec each month is
1000 INR ...
now we are going to pay the rent for the 12 month in jan
month itself so, 1000*12=12,000
first entry:

prepaid rent a/c DR 12,000 BALANCE SHEED INCREASE CUR ASSET
CASH/BANK CR 12,000 BALANCE SHEET DECREASE CUR ASSET

NOW WE ARE GOING TO AMORTIZE IT FOR EVERY MONTH:

REND A/C DR 1,000
PREPAID RENT A/C CR 1,000
(BEING RENT AMORTIZED FOR THE MONTH OF JAN MONTH)


REND A/C DR 1,000
PREPAID RENT A/C CR 1,000
(BEING RENT AMORTIZED FOR THE MONTH OF FEB MONTH)

AT THE END OF THE DECEMBER PREPAID WILL GET "0" IN CURRENT
ASSET AND FINALLY RENT WILL BE 12,000 IN P&L DEBIT SIDE.

Answer / yash bhatia

1) PREPAID EXP. A/C DR.
TO CASH/BANK/PARTY
(IF EXPENSE IS IN A CREDIT THEN THERE IS A CREDIT TO
PARTY A/C)

2) PARTY A/C DR. (IF THERE IS A CREDITOR)
TO CASH/BANK

3) EXPENSES A/C DR.
TO PREPAID EXP. A/C

Answer / anoop kb

Prepaid expenses is treated as Current Assets it shown in the

Assets side of the balance sheet under current Assets Journal

entry for prepaid expense is( as per the accounting rule assets increase should be debited)

Prepaid Expense A/c..........Dr
To Expense A/C

For Example Prepaid Insurance

Prepaid Insurance A/C........Dr
To Insurance A/C

Expand---------PSRT

1 Answers  

What is the journal entry for Call and a Put option both in the books of buyer and seller

0 Answers   Accenture,

what are the golden principle of accounting?

10 Answers   Bank Of America, Capital IQ, Genpact, Jenpac,

Let me know why we debit expenses and credit revenues

3 Answers  

what is the advantages of double entry system

1 Answers  

What problems might be encountered if there were no accounting standards?

0 Answers  

What if forfeiture of shares?

2 Answers   Capital IQ,

hi to all i have also cleared sbi exam and my interview is on 26th may 2009.can any one help to prepare for interview

0 Answers  

Raju put labour charges bill for Rs 65000/- You are directed to deduct 5% security deposit and 1.15% TDS from the bill. Pass journal entry for it

0 Answers  

definition of bank guarantee and use

2 Answers   Godrej,

Hi..! Frineds plz give a suggesion.I want to join in m.com (i.s.), What is features of this course.

3 Answers  

The partners agreed to take hero honda vehicle of Rams as firms vehicle by giving credit to his capital account. The vehicle was valued for Rs 65000/-Pass necessary entry

0 Answers