A company has received a bill of printing and stationery on 28.03.13 for the work of the year 2013-14.....the company has booked this transaction as follows:-
28.03.13 Printing and Stationery prepaid.......................Dr.
To Party......................................................
payment made on 20.04.13
20.04.13 Party.................................................Dr.
To TDS Payable
To Bank
20.04.13 Printing and Stationery.....................Dr.
To Printing and Stationery Prepaid
Whether the company is right in making entries....in my opinion prepaid expenses should not be recorded in 2012-13 as nothing has been prepaid on account of expenditure.Plz share your valuable views.
CAclubindia
