Hi All,
Kindly answer me for this...
What is the accounting entry for prepaid expenses & income received in advances ? how its appear in P/L ?
Thanks & Regards,
Ranjini
Ankit
(CA, CS)
(3064 Points)
Replied 21 February 2013
Dear Rajini,
the prepaid expenses....show as an asset in the balance sheet under current assets and the second effect goes to cash..
at the due date, transfer the prepaid expense a/c to the P&L
income in adv: liability in the balance sheet and the second effect in cash
at the due date, transfer the advance income a/c to the P&L
Ranjini
(Accountant)
(98 Points)
Replied 21 February 2013
Thank U Ankit Sir,
plz tell me is it correct....
for income received in advance
due entry
1.
cash account Dr XXX
To Income Received in advance a/c XXX
(Current Liability)
Transfer entry.
2.
Income received in advance a/c Dr XXXX
To Indirect Income a/c XXXX
Aman
(Finance Professional)
(604 Points)
Replied 21 February 2013
in second one u shall credit P&L a/c instead of indirect income...
MANIKANDAN S
(B.Com)
(39 Points)
Replied 21 February 2013
Entry for prepaid expenses :
Debit Prepaid Expense a/c xxx
Credit Cash a/c xxx
And by incurring the acutal expense :
Debit Expense a/c xxx
Credit Prepaid Expense a/c xxx
Suchitra Agrawal
(Credit Manager in ICICI Bank)
(62 Points)
Replied 21 February 2013
Hello Ranjini
Accounting treatment for prepaid expenses should be:
1. Prepaid Expense a/c Dr
To Expense a/c
2. Expense a/c Dr
To Profit And loss a/c
Amrit
(MBA cwa inter)
(21 Points)
Replied 22 February 2013
Rent paid in advance.
Rent a/c dr xxxxxxxxxxxxxx
To cash xxxxxxxxx
Adjustment entry:
Prepaid rent a/c dr xxxxxxxxxxx
To rent a/c xxxxxxxxxxx
At the end :
Rent a/c dr xxxxxxxxxx
To pepaid rent a/c xxxxxxxxx
CA Sanjay Bag
(CHARTERED ACCOUNTANT)
(3340 Points)
Replied 23 February 2013
For Prepaid Expenses the entry should be as described by Mr. Rakesh Mishra.
1. Prepaid Expenses A/c...............................Dr,
To, Cash/ Bank .
2. Expenses A/c.....................................Dr.
To,Prepaid Expenses.
Vardan Singh Sengar
(Accounts Manager in Private Company)
(433 Points)
Replied 23 February 2013
what should be the accounting entries of ?????
1. buying a credit card
2. expenses through credit card
3. payment of credit card bill along with int. expenses
Jag Bhushan Sharma
(Faculty in a B-School)
(633 Points)
Replied 23 February 2013
I have uploaded on youtube a video on preparation of Journal entries. You can refer to that video for your all such questions. I am giving below the link:
https://www.youtube.com/user/jbsclasses
Vardan Singh Sengar
(Accounts Manager in Private Company)
(433 Points)
Replied 23 February 2013
error 404 video not found :-(
Jag Bhushan Sharma
(Faculty in a B-School)
(633 Points)
Replied 23 February 2013
Dear Vardan just copy the link and you will reach there, I tried just now and it worked well.
"Live class on Python for Financial Analysis: Unlocking Efficiency in Accounting and Finance"
GST Live Certification Course (39th Batch) - April 2024 (Weekend Batch) (With Certificate)
CAclubindia
