banner_ad

Prepaid expenses

This query is : Resolved 
Profile Image

Profile Image

(Querist)
11 February 2012 A ltd. has paid factory license fees on 1/1/2012 Rs.100000.00 for the period 1/1/2012 to 31/12/2012. Whether on 31/3/2012 prepaid to be calculated? if yes according to which Accounting standard to be calculated? One member is maintaining that prepaid to be calculated only when enduring benefit is available like insurance exp. In the present case no enduring benefit is available so no prepaid to be calculated in license fees?
Profile Image

CA PARAS BAFNA

Profile Image

CA PARAS BAFNA (Expert)
12 February 2012 If you consider such expenses on due basis, these are to be incurred by you. The Fee charged can not be divided in No of months practically, as the same is annual fixed charge. In my view, no need to calculate prepaid fee separately.
Profile Image

CA. RAGHAV GARG

Profile Image

CA. RAGHAV GARG (Expert)
13 February 2012 Hi Bhushan,

Here I Differ with our other Expert, because i feel on the accrual basis of accounting, you should create a Prepaid Expense and have to book remaining expense in the next year.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now


CCI Pro
Join CAclubindia WhatsApp Finance Community & stay updated with the latest TAX news, compliance alerts and important updates all in one place!


Similar Resolved Queries


loading


Unanswered Queries


banner

Trending Online Classes

view all classess

CCI Pro
Meet our CAclubindia PRO Members
Subscribe Now

Follow us
add to google news



Answer Query



Quick Links



Browse by Category




Latest Job Openings

View all
Company
12 May 2026
Accounts Executive

Nafa Group

Mumbai

B.Com

View Details
Company
ARTICLESHIP 28 May 2026
Accounts, Audit & Compliance Executive

Shyam Joshi & Associates

Pune

B.Com

View Details
Company
Featured 28 May 2026
SEMI QUALIFIED/ CA DROPOUTS/ ARTICLES

T R SOOD & CO

New Delhi

CA Inter

View Details
Company
29 May 2026
Company Secretary - Part time

Shaswat initial support private limited

Ahmedabad

CS

View Details
Company
29 May 2026
Accounts assistant

Shubh Consultancy

Mumbai

Graduate (Any)

View Details
Company
23 May 2026
Account Executive

SMJ global advisors pvt ltd

New Delhi

B.Com

View Details
Company
14 May 2026
Financial Analyst - Remote Finance Expert

HiringBridge

Ahmedabad

CA

View Details
Company
29 May 2026
Finance Head

Bhawar Sales Corporation

Chennai

Graduate (Any)

View Details