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Prepayment

This topic has 2 replies, 2 voices, and was last updated 5 years ago by bananabuddy.

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April 14, 2020 at 7:49 pm #568284
bananabuddy
Member
- Topics: 14
- Replies: 13
hi need some help
X Trading’s year ends on 31 January 2020. Below are the transactions incurred:
(b) Insurance: Paid during the year 31 January 2020 $840; Prepaid as at 31 December
2020 $68.
how do i treat this?
my answer:
amt charged to SOPL: insurance exp 816
amt charged to SOFP: prepaid: 24
is this correct?
or is the prepaid amt of 68 irrelevant to the answer
thank you
April 16, 2020 at 7:59 pm #568471
P2-D2
Keymaster
- Topics: 4
- Replies: 7212
This is more likely to be a F3/FA question. Is the date of the prepaid amount correct?
Thanks
April 19, 2020 at 10:39 am #568740
bananabuddy
Member
- Topics: 14
- Replies: 13
the question did not state whether the prepaid amount was right or wrong. thank you anyways
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