on 1st jan 20x3 a business had a prepaid insurance of 10000. on 1 aug 20x3, it paid, in full the annual insurance invoice of 36000 to cover the twelve months to 31 july 20x4
amount charged to profit and loss for 31dec 20x3?
where should we account 36000?
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Accrual and prepayments
5y ago#1We credit cash and debit the insurance account. (And then of course we deal with the amount of the prepayment in the way I explain in my free lectures)
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