18 February 2011
If part is for current year and part for next year then, entry at the time of payment, Insurance Dr Prepaid Insurance Dr To Bank Cr
If totally prepaid, then, entry at the time of payment, Prepaid Insurance Dr To Bank Cr
If at the time of payment, insurance has been debited by full amount of payment, then at the end of the year a JV is to be passed as follows, Prepaid Insurance Dr To Insurance
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