Is this deposit a prepayment??????
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bobbynailer
Registered Posts: 21
I'd really appreciate it if you could help me on this matter: £25 has been paid as a deposit in 2016 for an expense that will fully incur in 2017 do I record this as 'Payment on Account' in sage like any other deposit or shall I treat as a prepayment,
Thank you in advance
Thank you in advance
0
Comments
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Are you (the company) paying the deposit, or are you in receipt of the deposit?
If you are paying it would be a prepayment.
If you are receiving it would be classed as deferred income / payment on account. It shall be displayed as a liability in the SFP.
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