Start networking and exchanging professional insights

Register now or log in to join your professional community.

Follow

Prepaid Expenses are shown as _

A) Miscellaneous Expenses

B) Loans and Advances

C) Current Liabilities

D) Investments

user-image
Question added by Shamseer KM , Accounts and Admin Payroll , KBM Group
Date Posted: 2015/05/01
Abdul Majid Khatri
by Abdul Majid Khatri , A Qualified Chartered Accountant , Honeycomb Logistics Pvt. Ltd.

As per Schedule III of the Companies Act,2013 Prepaid Expenses are shown under Current Assets under the sub head Short Term Loans & Advances if the same is paid for less than12 months after the Balance Sheet Date. On the other side if the same is paid for more than12 months then the amount which is paid for more than12 months shall be shown under Non-Current Assets under the sub head Long Term Loans & Advances.

Muhammad Usman Shafiq
by Muhammad Usman Shafiq , Manager Accounts , Sehat Al Sewdi Hospital (Dr.Sulaiman Al Habib Medical Group)

Prepaid Expenses are shown under Current Assets under the sub head Short Term Loans & Advances if the same is paid for less than12 months after the Balance Sheet Date.

Md. Moshiur Rahman Sumon
by Md. Moshiur Rahman Sumon , Assistant General Manager( Corporate Finance & Head of Internal Audit) , Progressive Life Insurance Company Limited

B) Loan and Advances is the right answer.

VENKITARAMAN KRISHNA MOORTHY VRINDAVAN
by VENKITARAMAN KRISHNA MOORTHY VRINDAVAN , Project Execution Manager & Accounts Manager , ALI INTERNATIONAL TRADING EST.

Answer option >>>>>>>>>>>>>>>>   B) Loans and Advances

WILSON DEPALAC
by WILSON DEPALAC , assistant manager accounts , falcon pack industry llc

ANSWER B. LOAN AND ADVANCES

Mohammad Athar
by Mohammad Athar , Senior Accountant , Techno

Option B (loans and advances) is the correct answer.

Ràchid El-khatib
by Ràchid El-khatib , Administrator , AL Masaood Group

i think investments are considered prepaid expenses because you spend the money first.

Saidul Alam
by Saidul Alam , Accountant , Akhtar Al Balushi Trad. & Cont. L.L.C

B. Loan and Advance .........................

Ahmed kandil
by Ahmed kandil , Cost Controller , Battour Holding Cpompany

correct answer is ( B) 

thank you 

AHSAN AKHLAQ
by AHSAN AKHLAQ , accounts manager , sapphire plastic pvt ltd

prepaid expenses treated as current liabilities

Sara Naeem
by Sara Naeem , Trainee Finance officer , Wah Brass Mill

Agreed with Abdul Majid Arora..thank you for the invitation.

More Questions Like This