Prepaid exp.

Insurance charges paid on 14.03.2011 should be reflate at current asset as prepaid expenses and not at profit & loss a/c, after 31.03.11 it should be expense out.

As u are saying that the amount paid by you pertains for the current financial year, so you have to pass the journal entry as Prepaid Insurance charges a/c Dr.   

                                 To Cash/Bank a/c

Doing this prepaid insurance charges will be shown under the head Loans and advances in Asset side.and on 01.04.2011 this will be reversed as Insurance charges a/c Dr.

                                                                                             To Prepaid Insurance charges a/c

so that the amount paid by you can be accounted in expense as it is for current year.

Just delet the entry and pass entry likewise:

prepaid expenses a/c dr and bank/cash credit Or

just credit the insurance a/c and debit the prepaid expense a/c

both way possible freind..........good luck