Dr: Prepayment to Suppliers (In Case of Expense, then "Prepaid expense" account will be debited e:g Prepaid Rent) Cr: Bank/Cash
yes debited is a deduction from the account as it only taked whats int your account out if you have enough
debited
Prepaid Rent is debited.
Prepaid Rent is debited.
Dr: Prepayment to Suppliers (In Case of Expense, then "Prepaid expense" account will be debited e:g Prepaid Rent) Cr: Bank/Cash
First debit prepayment account then credit cash/bank or supplier account.( Total prepayment amount) Second Debit relevant expenditure account by the portion its reflected to generate the revenue and credit same to the Prepayment Account Thanks Prasanna MMM Colombo
When a transaction is debited to your account, it means that the amount of money has been taken out or deducted from your account.
yes debited is a deduction from the account as it only taked whats int your account out if you have enough
debited
Prepaid Rent is debited.
Prepaid Rent is debited.
Payment is made to a supplier within the discount period.
When your account is debited, it means that money has been taken out of your account. This could be due to a purchase, a withdrawal, or a fee being charged.
When a sale is made on an accounts receivable account, the Accounts Receivable account is debited to reflect the increase in money owed by customers. Simultaneously, the Sales Revenue account is credited to recognize the income generated from the sale. This entry ensures that both the asset and revenue accounts are accurately updated in the accounting records.
The assets in the balance sheet will be understated as prepayment is under the assets account.
It is something that is entered into an account as a debt