insurance on car which is sold

there is prepaid insurance in B/S but during the year company has sold car but company has paid insurance for the same in last year.how this prepaid insurance is to be treated?

option1

insurance A/C.............dr

   To prepaid insurance

                                or

sale of car A/C..............dr

         To Prepaid insurance A/C

please solve this query its very urgent.

or any other treatment which is appropriate  according to you??