Accounting entries

As minesh said...right

By Expenses A/c [for which serv is recd]       dr       5000

By Prepaid Expense a/c [under assets]           dr       5000

             To Cash/bank        10000

Please Clear one thing is 10000 paid this year if yes then above ans is right. nut u wrote didnt paid is matter of confusion is it mean did not paid ? Then only exp a/c dr 500, to o/s exp will be credited by 5000.

No sir we did nt pay any expenses neither 5000 of current year nor a 5000  of next year we have just booked it.. I think 5000 which belongs to next year will come under accrued exp.. What do u say sir?

No sir we did nt pay any expenses neither 5000 of current year nor a 5000  of next year we have just booked it.. I think 5000 which belongs to next year will come under accrued exp.. What do u say sir?

 

If bill have received in the current year then 5000 should be booked for current year expense, 5000 as prepaid expense and party(service provider) should remain outstanding as you said payment has not been made.

If bill has not been received, then just create a provision for current year expense (i.e. 5000) only.