Open In App

Journal Entry for Prepaid Expenses

Improve
Improve
Like Article
Like
Save
Share
Report

Such expenses which are concerned with the next financial year but have been paid in the current year are called prepaid expenses. Prepaid Expenses are also known as Unexpired or Advance Expenses.

Journal Entry for prepaid expenses will be as follows:

Journal Entry: 

 

Example 1: Out of the rent paid this year, ₹5,000 is related to next year.

Solution:

Example 2: Interest paid in advance ₹500.

Solution:


Last Updated : 17 Aug, 2023
Like Article
Save Article
Previous
Next
Share your thoughts in the comments
Similar Reads