Assets are properties and possessions of the business on a particular date which are expected to benefit the future operations of the business
Assets are the economic resources from which we drive the benefits for more than one year. Assets are always shown on the debit side of the balance sheet.


These are the costs incurred to earn the revenue. As revenue is of the current nature; the benefit of the expense is also restricted to current period. Once the benefit goes beyond the current year it will be treated or its non-current part shall be treated as asset.e.g.if rent is Rs.1,000 per month and we paid total rent Rs.18,000 for one and a half year then Rs.12,000 is expense for the year and next Rs.6,000 are non-current (the benefit is not restricted to current year) and shall be treated as asset in the form of prepaid rent.