Why prepaid expenses are considered as Current assets? Post category:Accountancy Reading time:1 mins read SOLUTION They are treated as Current assets because if the expenditure for such expenses had not been incurred, cash would have to be spent in the near future. Please Share This Share this content Opens in a new window X Opens in a new window Facebook Opens in a new window Pinterest Opens in a new window LinkedIn Opens in a new window Viber Opens in a new window VK Opens in a new window Reddit Opens in a new window Tumblr Opens in a new window Viadeo Opens in a new window WhatsApp Read more articles Previous PostWhy inventory is excluded from liquid assets? Next PostWhy prepaid expenses are not considered as liquid assets? You Might Also Like X, Y and Z were partners in a firm sharing profit in 3: 2: 1. The firm closes its books on 31st March every year. Y died on 30th June, 2021. On Y’s death goodwill of the firm was valued at Rs. 60,000. Y’s share in the profit of the firm till the date of his death was to be calculated on the basis of previous year’s profit which was Rs. 1,50,000. Pass necessary Journal entries for goodwill and Y’s share of profit at the time of his death. August 5, 2022 When a liability is to be discharged by a partner, why is his Capital Account credited? September 27, 2022 If total assets of a firm are Rs. 6,00,000 and total liabilities are Rs. 1,80,000, what will the capitals of P, Q and R if they share profits in the ratio of their capitals and profit-sharing ratio is 5: 4: 3. September 27, 2022 Leave a Reply Cancel replyYou must be logged in to post a comment.
X, Y and Z were partners in a firm sharing profit in 3: 2: 1. The firm closes its books on 31st March every year. Y died on 30th June, 2021. On Y’s death goodwill of the firm was valued at Rs. 60,000. Y’s share in the profit of the firm till the date of his death was to be calculated on the basis of previous year’s profit which was Rs. 1,50,000. Pass necessary Journal entries for goodwill and Y’s share of profit at the time of his death. August 5, 2022
When a liability is to be discharged by a partner, why is his Capital Account credited? September 27, 2022
If total assets of a firm are Rs. 6,00,000 and total liabilities are Rs. 1,80,000, what will the capitals of P, Q and R if they share profits in the ratio of their capitals and profit-sharing ratio is 5: 4: 3. September 27, 2022