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what is the eatery for the prepaid expenses
Eg: prepaid rent
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Answer Posted / debasmita
expenses, which are paid in advance, have not yet been incurred, are called as prepaid expenses. it is considered as an asset.Here one asset(prepaid expense) is increased and another asset(cash) is decreased. So the entry is, Prepaid expense A/c Dr To Cash/Bank A/c
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