The insurance premium paid for the entire year will be apportioned for the period of 1st January to 31st March.

• The portion of premium for the period of 1st January to 31st March will be treated as pre...read more

Insurance premium a/c..........dr

To bank a/c

Insurance premium is paid for an entire year 31 march

Insurance premium A/c Dr.

To Bank A/c

The portion of premium for the period of 1st January to 31st March will be treated as prepaid expense and will be shown in the balance sheet as an asset.The remaining portion of premium will be treate...read more

Insurance premium A/c ......dr

To Bank A/c

The insurance premium paid for the entire year from 1st January to 31st December is considered a prepaid expense at the time of payment.

Here’s how it would be treated in accounting:

On 1st January, whe...read more

Total premium will be divided into 12 months and amt. of 3 months (Jan to March) will be booked on 31st March as insurance expense for the current FY and remaining amt. of 9 months (Apr. to December) ...read more

Insurance premium direct to bank acts

Insurance premium a/c

To Bank a/c

Insurance premium a/c debit

To bank a/c

The portion of premium for the period of 1st January to 31st March will be treated as prepaid expense and will be shown in the balance sheet as an asset. Insurance premium A/C

When an advance insurance payment is made, the prepaid insurance journal entry is a debit to the prepaid insurance account and a credit to the cash account. According to the accounting debit and credi...read more

Here's the accounting treatment for this situation:

1. Initially, when the insurance premium is paid on 1st January, you would record the full annual premium as an expense:

   Debit: Insurance Expense Credit:...read more

The portion of premium for the period of 1st January to 31st March will be treated as prepaid expense and will be shown in the balance sheet as an asset.