Quote:
Originally Posted by Rohail Khan
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..
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Thanks for you consideration, but you are partly right in this case. you are talking about meigs and meigs adjusting entires. However, the case is most opposite in M.A Ghani adjusting entries. that is why i am very confused.