Quote:
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..............
|
dear in my view expense account kbhi Cr nh hota..
preepaid rent ki entries is trha hngi
Dr Prepaid rent account
Cr cash
aur jaise jaise rent utilize hota jaega hum usko prepaid se nika k expense me dalte jain just like below
Dr rent expense
Cr prepaid account
aur in the end agar hum ne rent advance more than year ka pay kia hai tou wo balance sheet me Dr side show hoga. ku k prepaid amount humara asset hai..
me jaldi is pe ek example post krnga ta k sab clear hojae..