Easy Office
LCI Learning

Treatment of Prepaid expenses

This query is : Resolved 
Avatar

Querist : Anonymous

Profile Image
Querist : Anonymous (Querist)
17 July 2010 Wether prepaid expenses will be allowed or disallowed under income tax act for P & L of company
Profile Image

CMA. Subhash Kumar Jha

Profile Image

CMA. Subhash Kumar Jha (Expert)
17 July 2010 Prepaid exp as in actual sense not an expense. Its a current asset. This will be transferred to expense account only once it expires i.e next financial year & will be allowed as expense in P/L of the company under IT laws.
Profile Image

CA. BIJENDER KR. BANSAL

Profile Image

CA. BIJENDER KR. BANSAL (Expert)
17 July 2010 Agreed.
Preapid expense shown in Current asset.
These are t/f to respective expenses account in that year for which they are related.




You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

CAclubindia's WhatsApp Groups Link


Similar Resolved Queries


loading


Unanswered Queries



Trending Online Classes

view all classess
CCI Pro


Answer Query



Quick Links