Journal entries explanation

Originally posted by : vinoth
	could any one say entries and explanation for prepaid expenses outstanding expenses income received in advance accrued income....

prepaid expenses -

it means the payment has been done inadvance where as no service is received in this regard. hence they are treated as an asset.

entry---- prepaid expenses a/c dr. to expenses a/c

outstanding expenses:

this means that the services are received whereas payment for the same has not made, hence treated as liability.

entry--- expenses a/c dr. to outstanding expense

income recd in advance :

treated as liabilty due to the same reason (services not provided and amt recd in advance)

entry--income a/c dr. to advance income a/c

accrued income:

services provioded and payment not yet received, hence an asset

entry-- advance income a/c dr. to income a/c

Very well explained!!

Originally posted by : vinoth
	could any one say entries and explanation for prepaid expenses outstanding expenses income received in advance accrued income....

thnks :)