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How do you record a payment for insurance?

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Question ajoutée par Yazan Ahmad , programmer , wysada
Date de publication: 2016/12/29
Soliman Abd  ALmalak Gendy
par Soliman Abd ALmalak Gendy , مدير ادارة مراقبة حسابات , الجهاز المركزى للمحاسبات

As  the prepaid amount  expires, the balance in prepaid  insurance is reduced by a credit to prepaid insurance and a debit to insurance expenses.

manseer muhammed ali
par manseer muhammed ali , Accountant General , Royal Lighting L.L.C & Royal Furnishing LLC

Another objective is to report on the balance sheet the unexpired amount of insurance as the asset Prepaid Insurance. If you can arrange for your insurance payments to be the amount applicable to each accounting period, you can simply debit Insurance Expense and credit Cash.

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