Expense

This query is : Resolved

Gurvinder Singh (Querist)
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06 March 2014 Dear Sir/Mam

If I need to make a payment for the period 17Nov13-17Nov14, for Rs 4494.00 towards website development exp. What entry should I pass?
Kindly show the entry.
What amt should be carried forward to the next year?
And how to set-off that amt in next financial year.

Pls adv

Thnx and regards
Gurvinder Singh

Vishnu Saboo

Vishnu Saboo (Expert)
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06 March 2014 This is a expense which for over a period, so u must rout this thru prepaid expenses.
since you posting entry in March-14 you have to calculate expense upto 31st march and put entry.
Expenses A/c Dr. (expenses upto March)
Prepaid expenses Dr. (exp Apr to 17 Nov)
to party 4494.00

april onwards you must pass an entry in each month

Expenses dr (expense for the month)
to Prepaid exp.