Rent is paid for the month of April , 2019 in March , 2019 . The accou – InterviewSolution

1.	Rent is paid for the month of April , 2019 in March , 2019 . The accounting year ended on 31st March , 2019 . The accountant has shown it on the assets side of the Balance Sheet. Has he given the correct treatment ? Give reasons.
Answer» Yes , the accountant has given the correct treatment because rent for April , 2019 is a Prepaid Expense for the year ended 31st March , 2019 . Prepaid expenses are shown as an asset in the Balance Sheet.

Discussion

No Comment Found

Related InterviewSolutions

Sale of goods to Ram for cash is debited toA. RamB. Cash A/cC. Sales A/cD. None of these
Salaries Account isA. an Expense AccountB. an Asset AccountC. a Liability AccountD. None of these
Bank account is aA. Personal AccountB. Real AccountC. Nominal AccountD. None of these
Drawings Account is aA. Personal AccountB. Real AccountC. Nominal AccountD. None of these
Ajay , a dealer in furniture , received advance against sales of tables and chairs . In your opinion how should this advance be treated and why ?
Outstanding salary is aA. Real AccountB. Personal AccountC. Nominal AccountD. None of these
Rent is paid for the month of April , 2019 in March , 2019 . The accounting year ended on 31st March , 2019 . The accountant has shown it on the assets side of the Balance Sheet. Has he given the correct treatment ? Give reasons.
Sundry Creditors Account is aA. Revenue AccountB. Capital AccountC. Liability AccountD. None of these
Which of the following accounts has a credit balance ?A. Carriage InwardB. Discount ReceivedC. Carriage AccountD. Discount Allowed
Nominal Accounts are related toA. Assets and LiabilitiesB. Expenses and RevenueC. Debtors and CreditorsD. None of these