What is the adjustment entry for prepaid insurance premium is Rs 20000

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Solution

Dear Student

For the Adjustment of Prepaid insurance :

Journal Entry would be :

Prepaid Insurance A/c Dr. 20,000

To Insurance Expense A/c 20,000

(Being Prepaid insurance booked)

This Prepaid insurance would be Shown in the Asset side of Balancesheet and the corrosponding amount would be deducted from Insurance expense in Profit and loss Account .

Regards

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Similar questions

What is the adjusting entry for prepaid expenses?

=

1, 80, 000

=

10, 000

=

13, 000

Give the journal entries for the following adjustments-

(a)Outstanding salary Rs. 3,500.

(b)Rent unpaid for one month at Rs. 6,000 per annum.

(c)Insurance prepaid for a quarter at Rs. 16,000 per annum.

(d)Purchase of furniture costing Rs. 7,000 entered in the purchase book.

Which of the following adjusting entry is correct for prepaid expenses?

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Prepaid Insurance A/c	Dr.	20,000
To Insurance Expense A/c			20,000
(Being Prepaid insurance booked)