Answer Posted / 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

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