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Journal Entry for 1) prepaid salary ₹2000 2) paid rent in advnace ₹10000?
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Journal Entry for 1) prepaid salary ₹2000 2) paid rent in advnace ₹100...
Prepaid Salary ₹2000
Prepaid salary refers to the amount of money paid to an employee in advance before the work is performed. This is a common practice in many organizations to provide financial assistance to their employees when needed. In this case, the prepaid salary amount is ₹2000.

Explanation:
- Prepaid salary is considered as an asset for the company until it is earned by the employee.
- The entry for prepaid salary would involve debiting the Prepaid Salary account and crediting the Cash/Bank account.
- When the employee actually earns the salary by working, the Prepaid Salary account is debited, and the Salary Expense account is credited.

Paid Rent in Advance ₹10000
Paying rent in advance means making a payment for rent before it is due. This is a common practice in renting properties, where landlords may require tenants to pay rent in advance for a certain period. In this case, the rent paid in advance is ₹10000.

Explanation:
- When rent is paid in advance, it is recorded as a prepaid expense on the tenant's books.
- The entry for paying rent in advance would involve debiting the Prepaid Rent account and crediting the Cash/Bank account.
- As the prepaid rent is used up over time, it is expensed by debiting the Rent Expense account and crediting the Prepaid Rent account.
In conclusion, prepaid salary and rent in advance are common financial transactions that require proper accounting treatment to ensure accurate financial reporting. Keeping track of these prepaid expenses is essential for maintaining the financial health of the organization.
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Journal Entry for 1) prepaid salary ₹2000 2) paid rent in advnace ₹10000?
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