Accounting Entry Example 1: Prepayment Without VAT or Withholding
This scenario assumes:
-
Prepayment: 1000.00 USD.
-
Regular voucher: 5000.00 USD.
Prepaid Voucher
Accrual (voucher posting):
| Description | Account | Debit | Credit |
|---|---|---|---|
|
Prepaid Expense |
122000 |
1000.00 USD |
N/A |
|
Accounts Payable |
200000 |
N/A |
1000.00 USD |
Payment (payment posting):
| Description | Account | Debit | Credit |
|---|---|---|---|
|
Accounts Payable |
200000 |
1000.00 USD |
N/A |
|
Cash |
100001 |
N/A |
1000.00 USD |
Applied Regular Voucher
Accrual (voucher posting):
| Description | Account | Debit | Credit |
|---|---|---|---|
|
Expense |
631000 |
5000.00 USD |
N/A |
|
Accounts Payable |
200000 |
N/A |
5000.00 USD |
|
Prepaid Expense |
122000 |
|
1000.00 USD |
|
Accounts Payable |
200000 |
1000.00 USD |
N/A |
Payment (payment posting):
| Description | Account | Debit | Credit |
|---|---|---|---|
|
Accounts Payable |
200000 |
4000.00 USD |
N/A |
|
Cash |
100001 |
N/A |
4000.00 USD |