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Journalise the following Entries?
Outstanding salary of rs. 20000/-
Prepaid insurance of rs. 5000/-

Answer Posted / nidheesh

1, SALARY A/C DR 20000
TO SALARY OUTSTANDNG 20000 , HERE SALARYIS
OUTSTANDING SO THIS IS CURRENT LIABILITY , SALARY WILL GO
TO P&L A/C EXPENSE

2, PREPAID INSURANCE A/C DR
TO BANK / CASH , PREPAID INS. IS CURRENT ASSET

Is This Answer Correct ?    19 Yes 3 No



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