Deferred vs prepaid
Bachu Partish (11 Points)
30 April 2024
what is the difference between deferred and pre paid?
4 Replies
prasad Nilugal
( GST Practitioner & Accounts )
(14801 Points)
Replied 01 May 2024
Deferred is either an Asset or Liability in future, however prepaid is always an Asset for future
Also I will give you an example of Deferred Revenue Expenditure , like Advertisement expenditure may give you benefit in future or not , however prepaid expenditure always give benefit in future .
sabyasachi mukherjee
(27574 Points)
Replied 01 May 2024
There are two types of expenditure deferred revenue expenditure and pre paid.
advance to be recoverable in cash or kind.
deferred means spread over several periods. benefit will accrue over several periods
advance to be recoverable in cash or kind.
deferred means spread over several periods. benefit will accrue over several periods
Bachu Partish
(11 Points)
Replied 01 May 2024
Thanks
but my query is regarding difference between DEFERRED ASSET VS PREPAID ASSET
not in terms of expenditure
but my query is regarding difference between DEFERRED ASSET VS PREPAID ASSET
not in terms of expenditure
prasad Nilugal
( GST Practitioner & Accounts )
(14801 Points)
Replied 13 May 2024
Deferred Asset is an adjustment for future , however prepaid Asset is not an adjustment, it's Asset for future.
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