Deferred Expenses / Deferred Expenditure - Definition - Recognition And Accounting Journal Entry
Previously, we study about Deferred Revenue Journal Entries , now here we study about Deferred Expenditure Journal Entries in Accounting. Deferred Expe nses are also know as Prepayments. Deferred Expenditure / Expe nses Definition What is Deferred Expenditure? It is simply shows all those expenses which are incurred by the business but for which the business still not received the benefits at the end of Current Accounting Period. It is also known as Prepaid Expenses or Expenses Paid In Advance . Note: If Expenditures are incurred by the business but benefits or services are not received within the One Year, then we treated Deferred Expenditures as Fixed Assets or Non Current Assets U nder Deferred Assets . This is Current Asse t u nder Deferred Assets for the Company because the company incurred the expenses in advance and still not received the benefits at the end of Current Accounting Period. On the other hand, it is Current Liab...