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Prepaid rent and prepaid insurance, debit or credit?

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Question added by luke tardieu
Date Posted: 2016/09/25
Muhammad Waqas
by Muhammad Waqas , Accountant. , AlHussain

It will be Debited due to unexpired Assets and has valid time period.

Varun Aggarwal
by Varun Aggarwal , Assistant Manager – Tax & Legal, BPS (GCC) , Deloitte & Touche

Prepaid expenses whether it is a rent or insurance should be debited in the books of accounts as follows :

 

Prepaid Rent  / Insurance DR XXX

Rent / Insurance                 DR XXX

BANK / VENDOR                CR          XXX

vikash kumar
by vikash kumar , Junior accounts executive , Elcome international LLC

Debit till the date of expiry.