🧾 Prepaid Expenses:
-
Paid in advance, recognized as assets initially
-
Adjusted over time as expense
📝 Example:
Rent Expense A/c Dr. ₹5,000
To Prepaid Rent A/c ₹5,000
🕐 Accrued Expenses:
-
Incurred but not yet paid
📝 Example:
Salary Expense A/c Dr. ₹10,000
To Salaries Payable A/c ₹10,000
📥 Accrued Income:
-
Earned but not received
📝 Example:
Accounts Receivable A/c Dr. ₹3,000
To Interest Income A/c ₹3,000