10-02-2009, 07:41 PM
@ above
u see u ur self 've mentioned the ans in ur ques.. forget abt the sol which author gave, the correct one is to charge whole expense in income statement n thn at year end for the sake of cut-off less all the expense which has not yet been consumed bt paid(called prepaid) as prepaid from income statement and take this to balance sheet in current asset as prepayments and other receivables.
i hope no confusion this time.
regards
u see u ur self 've mentioned the ans in ur ques.. forget abt the sol which author gave, the correct one is to charge whole expense in income statement n thn at year end for the sake of cut-off less all the expense which has not yet been consumed bt paid(called prepaid) as prepaid from income statement and take this to balance sheet in current asset as prepayments and other receivables.
i hope no confusion this time.
regards
