Interested to Buy Any Domain ? << Click Here >> for more details...
How we can apportuin the prepaid ex.,
example for jouran voucher
- 1 Answers
- 5422 Views
- I also Faced
- E-Mail Answers
Answer Posted / h.r. sreepada bhagi
When payment is made, debit the expense account with the
amount relating to that period, debit Prepaid Expenses with
the remaining and credit bank or Cash A/c. Next year as and
when the expense accrues, debit expense a/c and credit
Prepaid Expenses A/c.
For example Insurance paid in Feb,10 for the period March,10
to Feb,11 - Rs. 35000/-
Payment entry in March,10:-
Insurance A/c Dr. Rs.2917/-
Prepaid Expenses A/c Dr. Rs.32083/-
Bank A/c Cr. Rs.35000/-
Next year from April to Feb, every month pass the following
Journal entry:-
Insurance A/c Dr. Rs.2917/-
Prepaid Expenses A/c Cr. Rs.2917/-
Prepaid expenses can be divided between different accounting
period based on number of days or months, based on
materiality of the transaction.
| Is This Answer Correct ? | 5 Yes | 1 No |
Post New Answer View All Answers
what are the main important accounting entries for AP and AR ...
how to create salary and pf statement in excel sheet?
WHETHER WE CAN BOOK ALL PRELIMINARY EXPENSES, INCLUDING ACCESSORIES RELATED TO PURCHASE OF A NEW VEHICLE TO CAPITAL EXPENDITURE?
Do you know offset accounting?
what is profit and loss(dr) in cash flow statement?
cash credit taken from bank then what is the general entry?
A Company has not deposited its ESI /PF dues from 01-04-10 till 31-12-10 in a year (Both the shares). What is the maximum time limit for that and is the liability as on date. Management wants to daly at the maximum, but want the calculations of each & every aspect- monthwise. The avrerage no. of employees are 50 and the salary is around 2.00 to 2.5 Lacs per month.
Regarding vat return,I have 3 units can i return at a time for 3 units vat return only one vat form. Kindly suggetion the same how to do.
What knowledge should financial accountant have?
swagat staryed business on 1st jan 2005 with cash on hand Rs. 10000
a cc. has balance Rs. 8,40,000 at the credit of profit and loss a/c this balance is used for redemption of debentures what will be the entry
In which account does the unpresented cheque will get recorded?
Which forms in use in service Tax, Excise duty and Vat for the return.
Our is a banking Activity, one person is supplying printing advertisement sheet of our product, whether he is liable to deducte TDS @ 1%
Hi I would like to know what is journal entry for buying securities with Margin Trading I mean 50% of cost is paid by broker. 2nd question is when we withdraw extra money from the balance we have in bank account which means our balance become (-) what is journal entry for that, should I just credit the bank or should I put the extra money with-drawled as a liability account ? Thank you in advance!
