Why prepaid expenses are not considered as liquid assets? Post category:Accountancy Reading time:1 mins read SOLUTION Prepaid expenses are not considered as liquid assets because they cannot be converted into cash. 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 prepaid expenses are considered as Current assets? Next PostShould the bank overdraft be included in current liabilities? You Might Also Like Ankit, Bhanu and Charu are partners in a firm sharing profits and losses equally with capital of Rs. 2,50,000 each. On 1st October, 2021, Ankit and Bhanu gave loans of Rs. 2,50,000 each to the firm whereas Charu took a loan of Rs. 1,00,000 from the firm on the same date. It was agreed among the partners that Charu will be charged Interest @ 6% pa. Interest on loan from partners was paid on 10th April, 2022.The firm closes its books on 31st March each year. Pass the Journal entries in the books of the firm for the year ended 31st March, 2022. October 11, 2022 Give one reason why partners are charged interest on drawings. September 26, 2022 The Operating ratio of a company is 60%. State whether ‘Purchase of goods costing Rs. 20,000’ will increase, decrease or not change the operating ratio. (C.B.S.E. 2019. M.P.) October 3, 2022 Leave a Reply Cancel replyYou must be logged in to post a comment.
Ankit, Bhanu and Charu are partners in a firm sharing profits and losses equally with capital of Rs. 2,50,000 each. On 1st October, 2021, Ankit and Bhanu gave loans of Rs. 2,50,000 each to the firm whereas Charu took a loan of Rs. 1,00,000 from the firm on the same date. It was agreed among the partners that Charu will be charged Interest @ 6% pa. Interest on loan from partners was paid on 10th April, 2022.The firm closes its books on 31st March each year. Pass the Journal entries in the books of the firm for the year ended 31st March, 2022. October 11, 2022
The Operating ratio of a company is 60%. State whether ‘Purchase of goods costing Rs. 20,000’ will increase, decrease or not change the operating ratio. (C.B.S.E. 2019. M.P.) October 3, 2022