CA Gyati Gupta
(In Practice)
(8227 Points)
Replied 25 December 2013
| 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
@VaibhavJ
(Believe!! Live your dreams!)
(33511 Points)
Replied 25 December 2013
Very well explained!!
CA Gyati Gupta
(In Practice)
(8227 Points)
Replied 25 December 2013
| Originally posted by : vinoth | ||
|
could any one say entries and explanation for prepaid expenses outstanding expenses income received in advance accrued income.... | |
thnks :)
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