Start networking and exchanging professional insights

Register now or log in to join your professional community.

Follow

Prepaid rent given in the Trial Balance will be treated as a (an): A) Asset B) Liability C) Revenue

user-image
Question added by Adnan Mustafa , Credit Controller , National Refreshment Company LLC
Date Posted: 2013/06/11
Siraj vannathamkandy
by Siraj vannathamkandy , Senior Accountant , Gulf Business Center

Prepaid rent means, Payment of rent Prior to its due date.
So it is an ASSET.
accounting treatment for the Prepaid Rent will be:- Prepaid Rent Account Dr.
Cash..
Cr.
here prepaid rent Debit & Credit cash for payment.
once the rent is actually due that time we have to reverse it by passing an entry ie; Rent (Expense) Dr.
Prepaid Rent Cr.
here Rent debit as it is an expense.& Credit prepaid Rent(just like Income consideration).

Muhammad Afaq
by Muhammad Afaq , SENIOR FINANCIAL ACCOUNTANT , United Eddy Company (United Yousef M. Naghi Group)

yes, it is an asset for the company, because the company has paid in advance for the premises that the co. will use in future.

 

Deleted user
by Deleted user

Asset

Ihab Al anabousi
by Ihab Al anabousi , tax auditor , income and sales tax department

A

Ilham Mohammed
by Ilham Mohammed , Senior Accountant , gulf center for foodstuff

Current Assets in Balance Shet

Deleted user
by Deleted user

Prepaid Rent is an Asset

JAHIR HUSSAIN
by JAHIR HUSSAIN , HR Welfare officer , Iss world of service

A) Asset

Asset liability fggggggghhbbb

Balaji Kobula Premanth
by Balaji Kobula Premanth , Senior Accountant , Ishtar Decor LLC

a:)

 

prepaid rent given in the trail balance will be treated as on 

Bilal  Yaqoob
by Bilal Yaqoob , GL Supervisor , Leejam Sports Company

An Asset

More Questions Like This