Entry for prepaid expenses?

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Question Posted / pawan

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Entry for prepaid expenses?..

Answer / rupan

Prepaid expenses a/c Dr
To Expenses(Concerned Expense) a/c

Is This Answer Correct ?

47 Yes

7 No

Entry for prepaid expenses?..

Answer / kuldeep srivastava

prepaid exp. A/C DR
TO respective exp.A/C

Is This Answer Correct ?

31 Yes

2 No

Entry for prepaid expenses?..

Answer / manish sharma

Related Expense Dr.
To, Cash or bank or party
(On book/payment of entire exp)

Prepaid exp. Dr.
To, Related expense
(for portion which is not for current period)

Related expenses Dr.
To, Prepaid Exp.
(On the next Period when we start new book of accounts)

Is This Answer Correct ?

12 Yes

2 No

Entry for prepaid expenses?..

Answer / yasar arafath

Prepaid expenses a/c Dr
To Expenses(Concerned Expense) a/c

Is This Answer Correct ?

8 Yes

2 No

Entry for prepaid expenses?..

Answer / madhuri.a

Prepaid Expenses a/c Dr
To Cash a/c

Is This Answer Correct ?

11 Yes

5 No

Entry for prepaid expenses?..

Answer / 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

Entry for prepaid expenses?..

Answer / sheetal

prepaid expenses dr.
to cash\bank

Is This Answer Correct ?

16 Yes

12 No

Entry for prepaid expenses?..

Answer / vivek

prepaid exp a/c Dr (shown in the balance sheet assets side because pre exp are short term assets of business)

TO exp A/c(it deduct from the exp which is incurred in future)

====the effect of this entry is 1.when we deduct the pre exp in p&loss a/c it increase the profit of business
2.when we show it in balance sheet the assets of business is increased
so this entry make effect equal

Is This Answer Correct ?

4 Yes

0 No

Entry for prepaid expenses?..

Answer / ravi

prepaid exp a/c dr
TO respective exp
if prepaid exp paid in cash
prepaid exp a/c dr
TO CASH

Is This Answer Correct ?

7 Yes

4 No

Entry for prepaid expenses?..

Answer / chandu

prepaid expenses a/c dr
to cash a/c