Journal entries
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
23 October 2015
PLEASE EXPLAIN IN DETAILS PREPAID EXPENSES, ACCRUED INCOME, ACCRUED EXPENSES WITH JOURNAL ENTRY AND EXAMPLES
Amol S Joglekar
(Expert)
23 October 2015
Financial year 2014-15.
01. Prepaid expenses. : Insurance for the period 01/03/2015 to 29/02/2016 paid on 01/03/2015, Rs. 12,000/-
11 months' insurance is said to be PREPAID as on 31/03/2015
Debit Prepaid Expenses (Insurance) 11,000
Credit Insurance Expenses
02. Accrued Income. : An amount of 100,000 is invested on 01/01/2015 for a period of 1 year, earning interest at 12& per annum, to be paid at the time of maturity.
Interest for a period of 01/01/2015 to 31/03/2015 ;on this deposit is said to be accrued.
Debit Investment 3,000
Credit Interest Accrued 3,000
03. Accrued Expenses : Please try to generate an example of this by yourself.
01. Prepaid expenses. : Insurance for the period 01/03/2015 to 29/02/2016 paid on 01/03/2015, Rs. 12,000/-
11 months' insurance is said to be PREPAID as on 31/03/2015
Debit Prepaid Expenses (Insurance) 11,000
Credit Insurance Expenses
02. Accrued Income. : An amount of 100,000 is invested on 01/01/2015 for a period of 1 year, earning interest at 12& per annum, to be paid at the time of maturity.
Interest for a period of 01/01/2015 to 31/03/2015 ;on this deposit is said to be accrued.
Debit Investment 3,000
Credit Interest Accrued 3,000
03. Accrued Expenses : Please try to generate an example of this by yourself.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- EPF ECR NEW FILE SEP 17TH 2026
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- Non filing of I T Returns
- TAX AUDIT ON PROFESSIONAL INCOME
- Capitalgain tax purposes for valuation report compulsory
- Oct 2025 Invoices
- Under marginal scheme
- TDS on Fixed Assets purchased
- How to Handle Active E-Invoices in GST Portal Deleted from Tally?
- GST on Renting godown to KFCSC for Storage of Raagi
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
- Resigning a auditor from the company for misconduct
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
