Advances and prepayments for accounting,

3. Expense Account
Prepayments b/d XX Accrued b/d XX
Payments XX Profit & Loss A/C XX
Accrued c/d XX Prepayments c/d XX
Total Total
Prepayments b/d XX Accrued b/d XX

4. Revenue/Sales/income Account
Accrued b/d XX Prepaid b/d XX
Profit & Loss A/C XX Payments XX
Prepaid c/d XX Accrued c/d XX
Total Total
Accrued c/d XX Prepaid b/d XX

5. Paid $620 for
four the months
of June, July,
August and
September.
$155 For the
month of
September
are prepaid
Expense
excluded
Example1

6. Example2(a)

7. Rents?
Paid for 13 month
and for the current
F/Y we only need 10
month
Example2(b)