Journal entries for Prepaid Accruals Depreciation with accumulated depreciation concept Provision for Bad debts DTA and DTL

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Explanation of journal entries for Prepaid, Accruals, Depreciation, Provision for Bad debts, DTA, and DTL.

Prepaid expenses are initially recorded as assets and then expensed over time as they are used up.
Accruals are expenses incurred but not yet paid or revenue earned but not yet received.
Depreciation is the allocation of the cost of a fixed asset over its useful life, with accumulated depreciation representing the total depreciation expense to date.
Provision for bad debts is an estimated amount set aside to cover potential losses from customers who may not pay their debts.
DTA (Deferred Tax Asset) and DTL (Deferred Tax Liability) are balance sheet items that reflect temporary differences between accounting and tax rules.
Journal entries for these concepts involve debiting or crediting the appropriate accounts to reflect the impact on the financial statements.

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