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Prepayment

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Viewing 3 posts - 1 through 3 (of 3 total)
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    Posts
  • April 14, 2020 at 7:49 pm
    Prepayment 2
    bananabuddy
    Participant

    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
    Prepayment 3
    P2-D2
    Keymaster

    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
    Prepayment 2
    bananabuddy
    Participant

    the question did not state whether the prepaid amount was right or wrong. thank you anyways

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