What is the normal balance of a prepaid insurance, debit or credit?

A credit

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Originally Posted by tickle

a credit

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So it isn't considered as an insurance expense?

I have no idea, you didn't say why you were asking this question. Am I supposed to assume it is a journal entry or something like that ?

Prepaid insurance is a asset account with a debit balance. When that months (or however long the payments are set for) prepaid insurance is expired, the prepaid account is credited for 1 months rent and the insurance expense account is debited for that amount also.

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Originally Posted by monaliz_20

What is the normal balance of a prepaid insurance, debit or credit?

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It is a debit because it is an asset to your company

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Shut up

Debit cash.

Obvious some people aren't here to solve their problems

Prepaid insurance is a debit balance because it is an asset to u who holds the insurance policy. But it is a liability to the insurance coy which means is a credit balance to d insurance coy because the cash received for the insurance policy have to be provided back to u in future in case of any risk u suffered.