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P&L or Balance Sheet

Accountancy

If we are paying a rent of our building for 1 year if we are paying the transportation cost for 1year, then we have show these in asset side of balance sheet or we have to show these in expenditure side of P&L account?

Vijay K

CA Inter

★ 9K+

30-Jun-21 11:33

481

Answers (5)

Best Answer

For this year balance sheet we need to show as prepaid expenses and for next year P&L A/C we need to show as current year expenses.

KALAIKKATHIRAVAN MURTHY

CA Inter

★ 4K+

30-Jun-21 11:40

KALAIKKATHIRAVAN MURTHY

For this year balance sheet we need to show as prepaid expenses and for next year P&L A/C we need to show as current year expenses.

Expenditure for CY is debited to P&L and expenditure pre-paid for next year is shown as asset in CY

Sriram Somayajula

Admin

30-Jun-21 19:20

Ok, but is CY.

Thread Starter

Vijay K

CA Inter

★ 9K+

30-Jun-21 19:28

Ok, bit is mean by CY

Thread Starter

Vijay K

CA Inter

★ 9K+

30-Jun-21 19:28

Thread Starter

Vijay K

Ok, but is CY.

Current year

Sriram Somayajula

Admin

30-Jun-21 19:28