Do prepaid salaries come under trading account or profit and loss account or balance sheet?

Question

Mustafa Khan · Answer

Prepaid is an asset account so it goes to balance sheet but at month end you need to expense it in profit & loss

Utilisateur supprimé · Answer

PREPAID SALARY COME UNDER ONLY BALANCE SHEET NO NEED TO SHOW OR ADD THE P&L A/C NO NEED TO AFFECT CURRENT YEAR PROFITS

PREPAID SALARY/EXP Dr.

EXP.PAYABLE /SUNDRY Cr Cr.

Prasanth Kunder · Answer

IT SOULD COME IN THE BALANCE SHEET

Thajudheen Mohamed Nalakatharakkal · Answer

We can treat as a current asset under balance sheet.

Visal Joseph · Answer

It will shown only in balance sheet under the head Current Asset

Utilisateur supprimé · Answer

Prepaid Salaries are part of Administrative expense therefore non operating expense. This is shown as a Current Asset account in the Balance Sheet.

Abdul Jaleel Hasan · Answer

Prepaid Salary is an asset, hence it should be classified as current assets on assets side of Balance Sheet

Imran Bhatti · Answer

it comes under current assets in balance sheet.