Out of insurance premium paid this year is related to next year
paraclete
Jul 29, 2012, 06:46 AM
No doubt you have heard the term; prepayment. Any annual payment is usually divided into that part related to the current financial year and that part related to the coming financial year, so your journal will depend upon what you did when you paid the premium, allocated it all to a prepayment or allocated it all to an expense