Current maturity as per schedule 3

Prepaid expenses (rent) of next 5 yr how to present it in balance sheet and notes to account does a part of it showed under current assets and the remaining in non current assets or wholly showed in non current assets or wholly showed in current assets
Replies (2)
Quick Summary
This discussion explores the correct accounting treatment for significant prepaid rent expenses, specifically for rent covering multiple years. It questions whether the entire amount should be classified as a current asset, a non-current asset, or split between the two. The consensus leans towards presenting it under 'loans and advances' within current assets, especially when a substantial portion relates to the upcoming year.

It's better to shown in loans and advances under current asset.
For example if the rent. of premises is 1 lac p.a and firm has paid 5 lac in advance for next 5 years so how to classify it whole 5 lac in current assets or whole in non current or partly in current. and 4 lac in non current ??

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register