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Deffered expenses

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(Querist)
23 November 2011 What is deffered Expenses ?? What are its implications in accounts ??
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CA Ayush Agarwal

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CA Ayush Agarwal (Expert)
23 November 2011 You Paid on 01/04/2011 Rs. 10000 For Shop Insurance For Two Years.
And Debited PL Account 11-12 For Rs. 5000/- and Defered Rs. 5000/- to Be Debited in Next Year.
Entry Will Be 2011-12
Insurance Dr. 5000
Prepaid Insurance Dr 5000
To Cash

Year 2012-13
Insurance Dr. 5000
to PP Insurance Account 5000
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Chintan

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Chintan (Querist)
29 November 2011 Thanks expert
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