Originally Posted by DDAY

First entry is for the opening of new period while second was made during the closing of the period....
for example: when we close the period and we have some amount of rent is extra then it will be c/f for new period. so the entry will be

Prepaid rent account (dr)................xxx
rent expense/rent a/c (cr)..............xxx

in the same way for the new period the entries will be reverse as

Rent expense/rent a/c (dr)..............xxx
prepaid rent a/c (cr).......................xxx

If im wrong then plz correct it..............