Ad Free CAclubindia and Daily Updates on your Mobile. Subscribe Now!

Query

Ravi Dubey (390 Points)

12 March 2019

Advance prepaid expenses......Paid for 3 months...
how will we Carry forward

Reply
Follow
Share

2 Replies

RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 13 March 2019

Book the actual months value to expenditure head and Balance months amount to prepaid heads...

After the said months it will transfer (journal) to expenditure head...

Upgrade to CAclubindia Pro. Subscribe Now!

prasad Nilugal (3914 Points)
Replied 13 March 2019

1st month entry

Advance prepaid expenses. A/c Dr

To Bank. A/c Cr

( expense. paid in advance )

2nd month

Expense. A/c Dr

To Advance. prepaid expenses. A/c Cr

( expense adjusted advance paid)

3rd month. entry

Expense. A/c. Dr

To Advance prepaid expenses. A/c Cr

( balance exp adjusted )

Show advance prepaid expenses. under loans & advance in asset side in balance sheet .

1 Like