Prepaid rent and prepaid insurance, debit or credit?

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The purpose of an entry that contains a debit to prepaid salary and a credit to ...
Posted by:
SREEDEVI SUNILKUMAR
12-March-2014

Question added by luke tardieu
Date Posted: 2016/09/25

Upvote (0) Views (5) Followers (4) Answers (3) Report Question

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3 Answers

by Muhammad Waqas , Accountant. , AlHussain

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

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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

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by vikash kumar , Junior accounts executive , Elcome international LLC

Debit till the date of expiry.

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