20 April 2010
Prepaid expenditure can be defined as the portion of a payment that relates to the value of services to be received in future accounting periods which will gradually expire or be used up over time. The assessment of prepaid expenditure is an important requirement of accrual accounting. Prepaid expenditure is included as an asset in the financial statements prepared by an entity.
20 April 2010
Yes all above are correct. If entire amount paid prepaid then entry as per Tapas. If part for this year and part for next year then as per B. K. Bansal.