I really can not get my head around Prepayments
I am hoping someone can help me because I know the correct answer but can not get to the figures:-
My company is VAT registered and the year end is 30th Sept
I pay for a software licence for a year at a time and last paid on 31st Dec at a net cost of £2700, the balance on this account is currently £5380, what will the cost of the software licence be charged to the profit & loos account for the year.
Any help would be much appreciated in a simple format please - thank you