2007-11-21 18:12:24 · 6 answers · asked by donna c 1 in Business & Finance ➔ Taxes ➔ United Kingdom
A memorandum entry. Meaning just note you have cheques outside the company.
I think it is a bit of a trick question. Prepaid rent is where you actually pay ahead. So providing post dated cheques is not really paying.
If you actually prepaid rent.....
Debit Prepaid Rent (an asset), credit cash.
When the rent is actually due, Credit Prepaid Rent, Debit Rent Expense.
2007-11-21 18:28:08 · answer #1 · answered by Gatsby216 7 · 0⤊ 0⤋
Enter the cheques in the cashbook so the cashbook balance is correct. (They are outstanding cheques even if they are postdated).
When preparing the accounts, because the rent a/c now includes these, treat them as payments in advance to the extent that the rent is prepaid.
2007-11-22 09:39:28 · answer #2 · answered by Do not trust low score answerers 7 · 0⤊ 0⤋
If the expense falls into 2007 and the checks are postdated 2008 than you have to accrue the expenses.
2007-11-21 18:16:19 · answer #3 · answered by ? 6 · 0⤊ 1⤋
entry into where if you pay advance rental it is in the future, if you use post dated cheque then you enter it in when presented to bank then that will not be future it will be current.
2007-11-21 18:16:25 · answer #4 · answered by bilbobagsend 6 · 1⤊ 1⤋
Why not just endorse the back of a $100 dollar Monopoly bill? Since it isn't real (the rapture) it is only fitting that the money shouldn't be either!
2016-05-24 23:58:04 · answer #5 · answered by ? 3 · 0⤊ 0⤋
jan rent
2007-11-21 18:15:15 · answer #6 · answered by Anonymous · 0⤊ 2⤋