prepaid expense ,how to treat in profit & loss a/c
- 4 Answers
- 35058 Views
- I also Faced
- E-Mail Answers
Answers were Sorted based on User's Feedback
Answer / sreedhaam
If prepaid expenses are given in the trial balance they are
recorded in the assets side of Balance sheet only. But if
they are given in the adjustments they are subtracted from
concerned expenses in the debit side of profit and loss
account and again are shown in the assets side of Balance
Sheet.
| Is This Answer Correct ? | 60 Yes | 3 No |
Answer / sampada
We deduct from respective expenses value in P & l A/c
| Is This Answer Correct ? | 38 Yes | 12 No |
Answer / sushil27284
No prepaid expenses will not touch the profit & loss A/c if this will appear in trail balance, but if this prepaid expenses is additional information related to any expenses head then the said prepaid expenses amount will be less from the related expenses head from profit & loss A/c
| Is This Answer Correct ? | 8 Yes | 1 No |
Answer / i.c. maurya
the prepaid exp. directly not charged from P/L A/c At the
time of payment we should pass the entry
Dr. prepaid exp
Cr. cash/bank
(being prepaid exp. paid)
when exp. exactly Due we pass the entry
Dr. exp.
Cr prepaid exp.
(being prepaid exp. due and reversed)
this entry effect the P/L(reduce) A/c
| Is This Answer Correct ? | 17 Yes | 11 No |
What is difference between accounts and finance?
how to strong my account for long time?
when we have to use form 12ba in income tax with example
What is the type of principal for CLOSING STOCK. and why we show closing stock two time that is once in trading account and another time in assets. if closing stock is Real account than what about showing in trading account as we dont show real account type in trading account. thanks
How you can adjust entries into account?
In accounting equation what is the treatment of investment in shares??
What is PBG & ABG in term of Contract for supply?
2 Answers ITP, JDM Pharmatech, Jubilant Organosys,
salary payable deduct tds entry
0 Answers Matrix Adhesive Incorporation,
What is the difference between tally 6 and tally erp 9?
1 Answers Infomatics Software Solutions,
How to group the companies in tally?
Rent paid out of your personal cash 3000 SAR
Recall a time when you faced a dissatisfied and aggressive customer. How did you handle it?
Audit 
