Hello sir and thank you for all your help on our studies.
Can I ask you please if it's wrong if the bookkeeper move the amount of the prepayment immediately with the payment instead of doing it at the end of the year? Most of the times the insurance invoices arrive in advance of the payment so if we record the invoice we could defer the excess amount to the prepayment directly. Is that correct? Thank you very much in advance
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Prepayments
5y ago#1That is fine - there are no rules as to the double entries (as long as the final balances are correct :-)
(And, of course, in the exam you are not expected to write up t-accounts :-) )
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