whats the entry to be passed for prepaid expense for next month including service tax component.
Entry for prepaid expenses
Rakesh Kumar (B.Com ( H ) Pursuing CA Final ) (327 Points)
18 February 2014
8 Replies
CA. Kuldeep Singhi
(Entrepreneur)
(424 Points)
Replied 18 February 2014
Let the Prepaid expense be telephone expense.Then
Prepaid Expense A/c Dr. 10000
Deferred Cenvat Credit A/c Dr. 1236
To Party 11236
Now when the expense becomes due after a month then
Expense A/c Dr. 10000
Cenvat Credit A/c Dr. 1236
To Prepaid Expense 10000
To Deferred Cenvat Credit 1236
Rakesh Kumar
(B.Com ( H ) Pursuing CA Final )
(327 Points)
Replied 18 February 2014
the whole entry itself
CA. Kuldeep Singhi
(Entrepreneur)
(424 Points)
Replied 18 February 2014
Have modified it
See it again
Rakesh Kumar
(B.Com ( H ) Pursuing CA Final )
(327 Points)
Replied 18 February 2014
you have debited prepaid expenses and also credited party a/c , we need to credit bank na. And whats this deferred cenvat credit. Is it input tax availed but cannot be utilised for setoff.
CA. Kuldeep Singhi
(Entrepreneur)
(424 Points)
Replied 18 February 2014
Bro if u hv paid then credit bank
& deferred cenvat credit is the same which u r telling
Kumar Gaurav
(Going...to be C.A soon...)
(1624 Points)
Replied 19 February 2014
agreed with Mr. Kuldeep
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