Treatment of Prepaid expenses
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
17 July 2010
How will be prepaid expenses treated if its debited in P & L a.c of a company ?
Wether it will be disallowed under income tax act?
Wether it will be disallowed under income tax act?
CMA Ramesh Krishnan
(Expert)
17 July 2010
Pre paid expenses not come in P&L it is an current assets in the Balance sheet. Under Income tax, it will be allowed in which year the expenses related
CA Ravi Sisodia
(Expert)
17 July 2010
expenses allowed as accrual basis.
Prepaid expenses a/c Dr.
to cash/bank a/c
_______________________
expenses a/c Dr.
to prepaid exp. a/c
______________________________
Prepaid expenses a/c Dr.
to cash/bank a/c
_______________________
expenses a/c Dr.
to prepaid exp. a/c
______________________________
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