How do we treat prepaid payments when preparing final accounts?

Prepayments they are not yet incurred, they are not recorded as expenses. Rather, they are classified as current assets since they are readily available for use.

Prepaid expenses are actually not incurred but paid in advance. So it is treated as current asset. It is shown in the asset side of balance sheet

As a current Asset in balance sheet.

Prepaid payments are short term assets, so it can be treated as current assets when preparing final account.

Prepaid expenses are current asset. Its treatment in Final accounts are its should deduct from concerned expense from P/L account debit side and should be shown in the asset side of the balance sheet.