Hi
Isn't prepaid rent like this
Dr. Prepaid rent
Cr. Bank
And as the months go by we recognise it as
Dr. Prepaid expense
Cr. Prepaid rent
Then why did it show as a wrong answer in multiple choice when I chose it?
Txs
2 Replies
prasad Nilugal
( GST Practitioner & Accounts )
(14811 Points)
Replied 12 June 2023
If you pay rent for next month in Current month entry will be
Prepaid rent A/c Dr
To Bank. A/c Cr
( Rent paid for next month)
prepaid rent A/c under Asset side Balance sheet.
In the next month adjustment entry will be
Rent A/c Dr
To prepaid rent A/c Cr
( Rent prepaid last month now adjusted )
Prepaid rent A/c Dr
To Bank. A/c Cr
( Rent paid for next month)
prepaid rent A/c under Asset side Balance sheet.
In the next month adjustment entry will be
Rent A/c Dr
To prepaid rent A/c Cr
( Rent prepaid last month now adjusted )
Yasaswi Gomes new
(Finance )
(4524 Points)
Replied 12 June 2023
Ok.im wondering why I didn't get qualified on an interview app.
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