Bookkeeping

In accounting, a liability refers to an obligation or debt owed by a business or individual. It represents an economic benefit to be received in the future, as opposed to assets, which represent ownership of resources and property. In this section, we will explore several common types of liabilities and their significance. In bookkeeping conclusion,…

Post this, only ₹6,000 will be left prepaid insurance in the prepaid insurance account. You repeat this until the entire amount is transferred to the expense account. The same principle applies to other prepaid costs such as rent or subscriptions. After entries have been recorded, it is essential to review the entries to confirm that all transactions are…