269A – Prepaid Taxes

Current Assets

Prepaid Other

Synopsis

Account 269A

Debits

Credits

  1. The cost of expenses paid for in advance of the current month.

  1. The cost of expenses paid for in advance and applicable to the current month.

 

Remarks:

Account 269A – Prepaid Taxes – should include all payments made to taxing authorities in advance of the period they cover, e.g., if property taxes are paid in November for a 12 month period, then 1/12 would be charged to Account 84 – Taxes Real Estate, while the balance would reside in A/C 269A – Prepaid Taxes until each month’s expense is credited out of the prepaid account and expensed.

 

All prepaid accounts should be scheduled, reconciled monthly, and details maintained until the asset is relieved.

Note: