Answer to Question #93926 in Accounting for Stan

Question

Dec 25 purchased beverages for the catering party,Dec 26 received 50,000 worth of catering 20% downpayment and the balance in 20 days

Answer 1

Dec 25 purchased beverages for the catering party (20% downpayment): 50000*20% = 10000

Debet 10000 Prepaid Expense (beverages)

Credet 10000 Cash/Bank

the balance in 20 days, 50000-10000=40000:

Debet 40000 Cash/Bank

Credet 40000 (beverages)

Dec 26 received 50,000 worth of catering :

Debet 50000 (beverages)

Credet 50000 Cash/Bank

https://accounting-simplified.com/prepaid-expense.html

https://www.business-case-analysis.com/deferred-expense.html