Prepaid salary account is a ___________.

Personal A/c

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Real A/c

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Nominal A/c

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None of the above

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Solution

The correct option is B Personal A/c
Prepaid (Unexpired) expense is a personal account and is shown on the Assets side of a balance sheet.
According to the accrual concept of accounting, transactions are recorded in the books of accounts at the time of their occurrence and not when the actual cash or a cash equivalent is received or paid.

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Similar questions

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