Query relating to journal entries
This query is : Resolved
25 December 2013
could any one say entries and explanation for
prepaid expenses
outstanding expenses
income received in advance
accrued income....
Thanks in advance......
02 January 2014
1. Prepaid expenses
Prepaid expenses A/c Dr
To Bank A/c
Since the payment has been made but expense is not incurred it is an asset.
Next year
Expenses A/c Dr
To Prepaid Expenses
2. Outstanding expenses
Expense A/c Dr
To Expense Outstanding
Since expense has been incurred but payment has not been made, it is a liability.
Next year
Expense Outstanding A/c Dr
To Bank
3. Advance income
Bank A/c Dr
To Advance Income
Since amount has been received, but sale has not been made/ service has not been provided, it is our LIABILITY to supply the goods/provide the service.
Next year
Advance income A/c Dr
To Income
Prepaid expenses A/c Dr
To Bank A/c
Since the payment has been made but expense is not incurred it is an asset.
Next year
Expenses A/c Dr
To Prepaid Expenses
2. Outstanding expenses
Expense A/c Dr
To Expense Outstanding
Since expense has been incurred but payment has not been made, it is a liability.
Next year
Expense Outstanding A/c Dr
To Bank
3. Advance income
Bank A/c Dr
To Advance Income
Since amount has been received, but sale has not been made/ service has not been provided, it is our LIABILITY to supply the goods/provide the service.
Next year
Advance income A/c Dr
To Income
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
- Nursery business
- Tax on Amount transferred in HUF Account
- GST REFUND ISSUE ON PURCHASE OF PLANT AND MACHINERY
- Condonation Request sec 119(2) b -Enhancement Limit of Leave Exemption prior to AY 2023
- TDS on Dashcam rent and allied services
- ETDS return q4 25-26
- Intimation under section 245
- Section 269ST applicability for capital introduced by partner to his partnership firm
- HOW TO ADJUST CREDIT NOTE AMOUNT ?
- Import Order Cancelled.
- Working on Gold wastage during Melting of old gold jewellery
- WRONG GSTR7 ENTRIES ACCEPTED ERRONEOUSLY
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
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
