What is the Journal Entry for Prepaid Expenses and
OutStanding Salary?
- 8 Answers
- 75463 Views
- I also Faced
- E-Mail Answers
Answer Posted / rajesh chawhan
prepaid expenses means part or full expenditure incurred
during the financial year but pertaining to next year.
First you should debit the expenses & thereafter transfer
portion of following years expenses to prepaid expenses viz
Expenses A/c. Dr
To Cash/Bank Cr
Prepaid Expenses Dr (exp pertaining to next year)
Expenses A/c. Cr
Please to refer answer posted above.
In case of certain expenses for current financial year but
yet to be paid as on 31st March. you have to provide for
such expenses if you are following mercantile system.
Therefore Salary for March 2010 not paid before 31st march,
the following entries to be passed
Salary A/c. Dr
To Outstanding Salary A/c. Cr
| Is This Answer Correct ? | 83 Yes | 10 No |
Post New Answer View All Answers
How shall I calculate the true profit of my business, as I am a layman for accounting.
explain about mergers & aquisitions? asked on 30/7/09
how to solved the shares qusionas ?
what is CDD’s configuration
about tally erp9
What is meant by advance ruling? What is the scheme of advance rulings?
please tell me questions asked in NICMAR for the post of accounts executive
hai everybody... wish u all the best for those who got selected in sbi associate bank is anyone from coimbatore region attending on 27th may 2009.
what is corporate accounting?
what is the difference between planned and non planned budgt
The following Trial Balance was extracted from the books of Chetan.Do you think that it is correct? If not,rewrite it in the correct form. Debits Rs Credits Rs ------------------------------------------------------------ Stock |8250 | Capital |10000 Purchases |12750 | Sales |15900 Returns outward |700 |Returns inwards |1590 Discount received|800 |Discount allowed |800 Wages & salaries |2500 |Scooty |1750 Rent and rates |1850 |Carriage charges |700 Sundry debtors |7600 |Sundry Creditors |7250 Bank Overdraft |2450 |Bills payable |690
What is Home Loan Modification?
Expand---------EDP
Lets suppose X sold goods to Y on credit basis and after the due date is over Y could not make the payment due to Y became insolvent, so In X books he will show the uncollectible as Bad debts expense but in Y account under which account Y will show this while journalizing this transaction in his books of accounts?
Your company code use USD as the company currency. You are trying to post to an account in EUR but get an error message that you can see the problem. What is the reason?( any 1 answer) • The currency maintained in the account master record is USD • The translation rate between EUR and USD is NOT maintained • The only balances in local currency indictor is set in the account. • The account determination for exchange rate difference is missing for the account
