3. Prepayments Flashcards
1
Q
What is the accounting treatment for a prepayment?
A
To set up a prepayment:
Debit - Prepayment (current asset in the statement of financial position)
Credit - Expense (statement of profit or loss)
What is the accounting treatment for a prepayment?
To set up a prepayment:
Debit - Prepayment (current asset in the statement of financial position)
Credit - Expense (statement of profit or loss)
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