Query

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...

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 .