Coming back to Expenses. Do you know what is Prepayment Expenses?
What is it used for?
Watch Dr Accounting chapter 17 to learn more about the world of Accounting with us!
Welcome to Doctor Accounting chapter seventeen.In this series, I would like to share you what is a Prepaid Expenses.
Prepaid expenses are expenses which have already been paid. But relates to future accounting period. They are shown in the statement of financial position as an asset. In the profit and loss, it will appear as Debit Pre-payment and Credit expenses.
In my next series of Dr Accounting, I would like to share with you on Accrual and Pre-payment Revenue. So, stay tuned!