Entry for prepaid expenses?
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- Genpact, Insurance, Wipro, I also Faced
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Answer / rupan
Prepaid expenses a/c Dr
To Expenses(Concerned Expense) a/c
| Is This Answer Correct ? | 47 Yes | 7 No |
Answer / kuldeep srivastava
prepaid exp. A/C DR
TO respective exp.A/C
| Is This Answer Correct ? | 31 Yes | 2 No |
Answer / manish sharma
Related Expense Dr.
To, Cash or bank or party
(On book/payment of entire exp)
Prepaid exp. Dr.
To, Related expense
(for portion which is not for current period)
Related expenses Dr.
To, Prepaid Exp.
(On the next Period when we start new book of accounts)
| Is This Answer Correct ? | 12 Yes | 2 No |
Answer / yasar arafath
Prepaid expenses a/c Dr
To Expenses(Concerned Expense) a/c
| Is This Answer Correct ? | 8 Yes | 2 No |
Answer / mohammed mandlaywala
Initial Entry
Prepaid Expense A/c
To Bank A/c
Entry at the time of recognition
Expense A/c
To Prepaid Expense A/c
Explanation:
When an expense is paid in advance, the mercantile system
does not permit the recognition of the same in the P/L
Account. Hence its entry is similar to purchase of an asset.
In the year in which the actual expense is recognised
expense acount is debited and the prepaid expense A/c which
was an asset is now credited and removed from the books.
| Is This Answer Correct ? | 6 Yes | 0 No |
Answer / vivek
prepaid exp a/c Dr (shown in the balance sheet assets side because pre exp are short term assets of business)
TO exp A/c(it deduct from the exp which is incurred in future)
====the effect of this entry is 1.when we deduct the pre exp in p&loss a/c it increase the profit of business
2.when we show it in balance sheet the assets of business is increased
so this entry make effect equal
| Is This Answer Correct ? | 4 Yes | 0 No |
Answer / ravi
prepaid exp a/c dr
TO respective exp
if prepaid exp paid in cash
prepaid exp a/c dr
TO CASH
| Is This Answer Correct ? | 7 Yes | 4 No |
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