Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 46 - No. 25)
What happens when a prepaid expense is used during the accounting period?
Debit Prepaid Expense and Credit Expense Account.
Debit Expense Account and Credit Prepaid Expense.
Debit Cash and Credit Prepaid Expense.
Debit Expense Account and Credit Cash.
Explanation
As the prepaid expense is used, the expense account increases.
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