Answer / sunil

When the prepaid exp is paid, the entry would be

Prepaid exp A/c Dr
To Cash A/c

And when it is reversed the entry would be

Expense a/c Dr
To Prepaid Exp A/c

Answer / zuheb

Prepaid expenses a/c dr
To cash a/c

Answer / kartik

preepaid Expense A/c Dr

To Cash/Vender

Answer / satyanarayanaraju

Mr Veerender saab entry is correct. But clasification is
wrong. It will come under Assets side. All debit balances
will be placed under assets side.

Answer / santoh kumr.v

prepaid expence a/c Dr

To cash a/c
It will come to Asset side in Balance sheet

Answer / sowmya

the answer given by mr.saravanan is perfectly right

Answer / bharath chowdary

Prepaid expenses it is an expense paid in advance. if it is
asked in Trail balance only it would take place in the
Current assets, the case in other if it is asked in the
adjustments it's supposed to be debited to P&L account and
should be shown in the balance sheet in Assets head as a
current asset.

Answer / karthic.v phone:9884655491

for instant :rent for the month of jan - dec each month is
1000 INR ...
now we are going to pay the rent for the 12 month in jan
month itself so, 1000*12=12,000
first entry:

prepaid rent a/c DR 12,000 BALANCE SHEED INCREASE CUR ASSET
CASH/BANK CR 12,000 BALANCE SHEET DECREASE CUR ASSET

NOW WE ARE GOING TO AMORTIZE IT FOR EVERY MONTH:

REND A/C DR 1,000
PREPAID RENT A/C CR 1,000
(BEING RENT AMORTIZED FOR THE MONTH OF JAN MONTH)


REND A/C DR 1,000
PREPAID RENT A/C CR 1,000
(BEING RENT AMORTIZED FOR THE MONTH OF FEB MONTH)

AT THE END OF THE DECEMBER PREPAID WILL GET "0" IN CURRENT
ASSET AND FINALLY RENT WILL BE 12,000 IN P&L DEBIT SIDE.

Answer / yash bhatia

1) PREPAID EXP. A/C DR.
TO CASH/BANK/PARTY
(IF EXPENSE IS IN A CREDIT THEN THERE IS A CREDIT TO
PARTY A/C)

2) PARTY A/C DR. (IF THERE IS A CREDITOR)
TO CASH/BANK

3) EXPENSES A/C DR.
TO PREPAID EXP. A/C

Answer / anoop kb

Prepaid expenses is treated as Current Assets it shown in the

Assets side of the balance sheet under current Assets Journal

entry for prepaid expense is( as per the accounting rule assets increase should be debited)

Prepaid Expense A/c..........Dr
To Expense A/C

For Example Prepaid Insurance

Prepaid Insurance A/C........Dr
To Insurance A/C

Expand CASA

0 Answers  

If you are making a transaction of Cash Purchase on 30th March and your accounting period ends on 31st March. Does it affect the Current Asset of the Company?

5 Answers   FIC,

what is uses your subject commerce in banking

1 Answers   Banking,

what is treasury stock

3 Answers   Capital IQ,

what is purchase consideration? How does it come about and how is it treated in the books?

0 Answers  

Short Answer on ______________Import Trade

0 Answers  

Exapnd--------RAN

0 Answers  

what is meant by inter trading

2 Answers   Karvy,

what is amortization?

2 Answers   FT,

what are the procedures of paying service tax and vat?

2 Answers   Insight,

All shot cut key use in the tally software & it's uses

0 Answers  

Short Answer on __________Revenue

0 Answers