Some payments (expenses) are made in advance. Example monthly seasons parking for the month of January to March is paid in January, February and March as payments in advance.
At [A/c Entry] , click [Payment]
Click [Others]
Assuming the monthly parking charge is 80.00 per month, accounting entries are as follows
|
COA |
Debit |
Credit |
Prepayment |
D-P004-1 |
240.00 |
|
Input tax |
D-G098 |
16.80 |
|
Bank |
D-B001-1 |
|
256.80 |
(Being season parking for Jan, Feb, Mar 2020,prepayment for Feb and March 2022)
In January 2022, reverse the prepayment entry to parking expenses
|
COA |
Debit |
Credit |
Parking expenses |
O-P004-1 |
80.00 |
|
Prepayment |
D-P004-1 |
|
80.00 |
At [A/c Entry], click [GL Journal]
For February and March, use [Copy] to repeat the reversal
Next, go to Provision for bad debts
Related Topics |
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Watch all videos: |
http://realtimme.cloudapp.net/basic/index.html?gl_prepayments.htm
