Unearned Income
Income received during a period but applicable to the next period is termed unearned income.Suppose for example,a company received on April 1 2016 apprentice premium amounting to 60000 for three years. Though the trail balance drawn up at March 31st 2017,Shows 60000 against apprentice premium the whole amount should not be treated as Income for the… (0 comment)

What is accrued Income?
An income which is due but not received on the date of closing the books is known as accrued income. For example,when the books are closed on 31st march March 2016,Interest on certain securities has fallen due. 2500. But the  interest received is only 2000; So the accrued  interest amounts to 500.Before the books are closed,the… (0 comment)

What is prepaid expense?
Prepaid expense are future expenses that have been paid in advance and its benefits are yet to be received . A prepaid expenses arises when the amount is paid in advance for the goods or services to be received in future. Hence prepaid expenses are treated as an asset of the organisation and  its value… (0 comment)

Outstanding Expense & Journal entries
The outstanding expenses are those expense which are due but not paid. In order to know the exact business result such expenses are accounted in the period as it occurred. The amount shown against an expense item in the trail balance represents the amount actually paid, and if any amount remains unpaid on account of an… (2 comments)
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