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Entry for prepaid expenses?

Answer Posted / venugopal redddy

Prepaid exp(or) Income account Dr
To Income received in advance account

The two fold effect is
1. It is shown on Cr side of P "N" Loss a/c
2. Showed in Liabilities in the Balance Sheet

This is Verified with Pankaj Publications.

Is This Answer Correct ?    0 Yes 8 No



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