For prepaid exp.

This query is : Resolved

Bhupendra Dubey (Querist)
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27 April 2015 Received telephone bill & electricity bill for period 01-03-2015 to 05-04-2015, we made payment at 25/4/2015 for same.

Should we pass entry for Prepaid Exp. for period of April in Closing year 31-3-15

Please reply.

Vishnu Saboo

Vishnu Saboo (Expert)
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01 May 2015 you may take provision for 01-03-15 to 31-03-15 by debiting expenses and crediting outstanding liablities a./c
when you pay the same, reverse OL a/c to the extent of provision made and rest will be expenses for 01-04-15 to 05-04-15