Why did the salaries paid in advance at the end of previous year was not Included??

Yamini · 2 May 2024

Yaa.. But it is the previous year advance so for 2023 it's a expense why are we not considering

Anas · 1 May 2024

Salaries paid in advance at the end of the previous year are not included in the current year's financial statements because they pertain to services that will be rendered in the upcoming year. They are considered a prepaid expense and are recognized as expenses in the period in which the services are actually provided.