prepaid expense Forums › FIA Forums › FA2 Maintaining Financial Records Forums › prepaid expense This topic has 1 reply, 2 voices, and was last updated 8 months ago by Ken Garrett. Viewing 2 posts - 1 through 2 (of 2 total) Author Posts July 5, 2020 at 1:45 am #576016 beticopper Topics: 69Replies: 13☆☆ does prepaid expense has net effect of 0 on asset side of balance sheet(cash decrease and prepayment increase) and decreases liability and increases capital? July 5, 2020 at 10:10 am #576037 Ken GarrettKeymaster Topics: 9Replies: 9050☆☆☆☆☆ A prepai expense has been paid so Dr Expense Cr Cash. At the end of the year the prepaid part is calculated and this decreases the expense and increases assets (prepayments). Author Posts Viewing 2 posts - 1 through 2 (of 2 total) You must be logged in to reply to this topic. Log In Username: Password: Keep me signed in Log In