Why prepaid expenses are considered as Current assets? Post category:Accountancy Reading time:1 mins read SOLUTION They are treated as Current assets because if the expenditure for such expenses had not been incurred, cash would have to be spent in the near future. Please Share This Share this content Opens in a new window X Opens in a new window Facebook Opens in a new window Pinterest Opens in a new window LinkedIn Opens in a new window Viber Opens in a new window VK Opens in a new window Reddit Opens in a new window Tumblr Opens in a new window Viadeo Opens in a new window WhatsApp Read more articles Previous PostWhy inventory is excluded from liquid assets? Next PostWhy prepaid expenses are not considered as liquid assets? You Might Also Like A, B and C who are presently sharing profits and losses in the ratio of 5: 3: 2 decide to share future profits and losses in the ratio of 2: 3: 5. Give the Journal entry to distribute ‘Workmen Compensation Reserve’ of Rs. 1,20,000 at the time of change in profit-sharing ratio, when: (i) no other information is given; (ii) there is no claim against it. July 27, 2022 Kanika and Gautam are partners doing a dry-cleaning business in Lucknow, sharing profits in the ratio 2: 1 with capitals Rs. 5,00,000 and Rs. 4,00,000 respectively. Kanika withdrew the following amounts during the year to pay the hostel expenses of her son: July 21, 2022 Following is the summarised Balance Sheet of Philips India Ltd. as at 31st March 2018: August 18, 2022 Leave a Reply Cancel replyYou must be logged in to post a comment.
A, B and C who are presently sharing profits and losses in the ratio of 5: 3: 2 decide to share future profits and losses in the ratio of 2: 3: 5. Give the Journal entry to distribute ‘Workmen Compensation Reserve’ of Rs. 1,20,000 at the time of change in profit-sharing ratio, when: (i) no other information is given; (ii) there is no claim against it. July 27, 2022
Kanika and Gautam are partners doing a dry-cleaning business in Lucknow, sharing profits in the ratio 2: 1 with capitals Rs. 5,00,000 and Rs. 4,00,000 respectively. Kanika withdrew the following amounts during the year to pay the hostel expenses of her son: July 21, 2022
Following is the summarised Balance Sheet of Philips India Ltd. as at 31st March 2018: August 18, 2022