In which scenario we book credit balance for prepaid expenses?

Question

Accepted Answer

Credit balance for prepaid expenses is booked when the amount paid exceeds the expense incurred.

Credit balance is booked when the prepaid expense is cancelled or reduced.
This can happen when the service is not fully utilized or the contract is terminated early.
Example: Prepaid rent for a year is paid in advance but the tenant moves out after 6 months.
Example: Prepaid insurance premium is cancelled before the policy period ends.
The credit balance is recorded as a liability on the balance sheet.

Accepted Answer

It's important to differentiate between "credit balance" in the context of a credit card, and "prepaid expenses" in an accounting sense. They are distinct concepts. Here's a breakdown regarding Canara Bank:

*Canara Bank Credit Cards:*

* *Credit Balance:*
    * When referring to a Canara Bank credit card, "credit balance" typically relates to the outstanding amount you owe on your card.
    * You can manage your credit card balance through various methods:
        * *Netbanking:* Logging into your Canara Bank netbanking account.
        * *Mobile Banking:* Using the Canara Bank mobile app.
        * *Branch Visit:* Visiting a Canara Bank branch.
        * *Customer Care:* Contacting Canara Bank customer care.
* To get very specific details about credit card terms and conditions, it is always best to look at the official Canara bank website, or contact them directly.

*Canara Bank Prepaid Cards:*

* Canara Bank also offers prepaid cards. These are different from credit cards.
* Prepaid cards are loaded with a specific amount of money before use.
* You can obtain and reload these cards at Canara Bank branches.
* Information regarding Canara Banks prepaid cards can be found on the Canara bank website.

*Prepaid Expenses (Accounting):*

* "Prepaid expenses" in accounting refer to payments made for goods or services that will be used in the future. This is an accounting principle, not directly a function of a "Canara."
* If you are asking about how to record prepaid expenses in your accounting records, that will depend on your accounting software or method, and is not specific to Canara bank.
* If your business uses Canara bank accounts, then the transactions related to those prepaid expenses would show in your bank statements.

*Key Takeaways:*

* For credit card balance inquiries, use Canara Bank's digital banking services or contact customer care.
* For prepaid Canara bank cards, contact your local Canara bank branch, or check the canara bank website.
* "Prepaid expenses" is an accounting term.

Accepted Answer

When we recognise the current period expense from the prepaid portion.

In which scenario we book credit balance for prepaid expenses?

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