Entry for prepaid expenses

Let the Prepaid expense be telephone expense.Then

Prepaid Expense A/c Dr.     10000

Deferred Cenvat Credit A/c Dr. 1236

To Party                                 11236

Now when the expense becomes due after a month then

Expense A/c Dr.   10000

Cenvat Credit A/c Dr. 1236

To Prepaid Expense  10000

To Deferred Cenvat Credit 1236

i didnt get u

What u didn't understood ?

the whole entry itself

you have debited prepaid expenses and also credited party a/c , we need to credit bank na. And whats this deferred cenvat credit. Is it input tax availed but cannot be utilised for setoff.

agreed with Mr. Kuldeep