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Adjustments in Preparation of Financial Statements — Account STD 11 Commerce — Question

CBSE BoardEnglish MediumSTD 11 CommerceAccountAdjustments in Preparation of Financial Statements1 Mark
Question
How are Prepaid Expenses shown in the Final Accounts?
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Answer

Prepaid Expenses are deducted from the relevant expense and shown in the Trading Account or Profit and Loss Account. They are also shown in the Balance Sheet on the Assets side under the main head Current Assets.

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