9.2.2 Prepayments

A. Prepaid Expenses


Account Title

Dr. Cr.
Depreciation - Infrastructure Assets xx
Accumulated Depreciation

xx

To record depreciation expense





B. Unearned Revenues


Account Title

Dr. Cr.
Income xx
Deferred Credits to Income

xx

To record unearned revenues





9.3 Closing Journal Entries

After the close of the fiscal year, the C/M Accountant shall draw a journal voucher closing the income and expense accounts to the government equity account. The closing process is as follows:

9 9.3.1 Debit all the revenue account balances and credit the total to the Revenue and Expense Summary account.

9.3.2 Credit all the expense account balances and debit the total to the Revenue and Expense Summary account.

9.3.3 Debit the credit balance or credit the debit balance of the Revenue and Expense Summary account to the Government Equity account.



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