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Answer Posted / ashish sakalley
Prepaid exp are those exp which exp are paid in advance
like Annual Maintenance Contract (AMC). If you paid AMC of
Rs.10,000 from September'09 to August'10 in this case your
entry is :-
AMC A/c Dr. 5000/-
Prepaid AMC A/c. Dr. 5000/-
to cash/bank a/c cr. 10000
| Is This Answer Correct ? | 16 Yes | 2 No |
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