This Is A Situation Please Pass A J.V.
{A company purchased an Insurance In The Month Of Jan 2021 For Rs.12,000/- Per Month It Cost Rs.1,000/-
The Insurance is Valid Till December 2021}
1)In the month of January you pass entry
Advance Insurance policy ( Asset) A/c Dr 12000
To Bank A/c Cr 12000
( Advance payment of Insurance)
2)Then every month up to December pass following entry .
Insurance primium A/c Dr 1000
Advance Insurance policy A/c Cr 1000
(primium adjusted against advance payment)
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