Answer Posted / 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.

What is the difference between Deffered Tax Assets & Deffered Tax Liabilities

2204

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An applicant paid excess amount to the Government Office through a demand draft for a particular permission/license instead of actual fees. Later he went to government office and requested to return the previously submitted demand draft. Can he get back the Previously submitted demand draft(which was not adjusted into government account) duly paying he actual fee?

1966

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What will be entry pass in tally if TDS paid by Credit Card.?

2065

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how to prepare HSD statements in tally

2689

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explain about mergers & aquisitions? asked on 30/7/09

2228

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Expand---------DEP

1940

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define bank Draft

2441

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what is account & what is finance

2227

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If income and expense both are equal then what it depicts

1925

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In Pricing the gallons of petrol sold,service station 'A' follows the first-in-first-out method,while service station'B'follows last-in-first-out method.On 1st January both has the same quantity in stock viz.6,000 gallons at Rs.26 per gallon.During the month,each station recieved additional supplies of 6,000 gallons at Rs.27.50 per gallon.Sales for each of these two stations,during the month,were 8,800 gallons at Rs.29 per gallon. Determine for each service station,profit earned during the month and value of the petrol in stock at close of the month.

4243

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I WANT ACCOUNT ASSISTANCE INTERWIEV QUETION IN L&T

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Reserve Capital and Reserve Capital

2271

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state and explain THREE types of situation to which accounting concept might be applicable

2105

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A company produces and sells 12500 units of Commodity X at Rs 50 each. The variable cost of the production is 20 % of selling price. Fixed cost being Rs 100000 per annum. Calculate the PV ratio and BEP if.  The selling price is reduced by 5 %.  Fixed cost is increased by 2 lacs

1820

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What are the names of the codes which are needed for RTGS ? Payment and wire transfer respectively ?

1788

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