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 State whether the payment of Cash to Trade Payables will result in inflow, outflow’ or no flow of Cash. October 4, 2022 From the following information, calculate Cash Flow from Investing Activities: August 18, 2022 The partners of a firm, Alia, Bhanu and Chand distributed the profits for the year ended 31st March, 2017, Rs. 80,000 in the ratio of 3 : 3 : 2 without providing for the following adjustments: (a) Alia and Chand were entitled to a salary of Rs. 1,500 each p.a. (b) Bhanu was entitled for a commission of Rs. 4,000. (c) Bhanu and Chand had guaranteed a minimum profit of Rs. 35,000 p.a. to Alia any deficiency to borne equally by Bhanu and Chand. Pass the necessary Journal entry for the above adjustments in the books of the firm. Show workings clearly. July 22, 2022 Leave a Reply Cancel replyYou must be logged in to post a comment.
State whether the payment of Cash to Trade Payables will result in inflow, outflow’ or no flow of Cash. October 4, 2022
The partners of a firm, Alia, Bhanu and Chand distributed the profits for the year ended 31st March, 2017, Rs. 80,000 in the ratio of 3 : 3 : 2 without providing for the following adjustments: (a) Alia and Chand were entitled to a salary of Rs. 1,500 each p.a. (b) Bhanu was entitled for a commission of Rs. 4,000. (c) Bhanu and Chand had guaranteed a minimum profit of Rs. 35,000 p.a. to Alia any deficiency to borne equally by Bhanu and Chand. Pass the necessary Journal entry for the above adjustments in the books of the firm. Show workings clearly. July 22, 2022