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Prepaid insurance is that amount which is paid in advance and no benefit has taken yet that's why it is current asset for business.
Prepaid insurance is amount paid in advance that's why it is an asset of business and like all other assets accounts it also has debit balance as normal balance.
Prepaid Expenses would normally have a debit balance.
[Debit] Prepaid Insurance [Credit] Cash / bank
Debit
Prepaid insurance is that amount which is paid in advance and no benefit has taken yet that's why it is current asset for business.
Prepaid insurance is amount paid in advance that's why it is an asset of business and like all other assets accounts it also has debit balance as normal balance.
Prepaid Expenses would normally have a debit balance.
[Debit] Prepaid Insurance [Credit] Cash / bank
Debit
debit insurance expense 10000 credit prepaid insurance 10000
Prepaid Rent is an asset, therefore to decrease the asset (or use up the rent) a decrease would be a credit. Assets generally maintain a debit balance, which means to increase the balance we debit and to decrease the balance we credit.
No identification is required to use a prepaid credit card. Only the prepaid limit may be spent when using a prepaid credit card for a purchase, so there is no reisdual balance or finance charges after the purchase.
Prepaid insurance is that amount the payment of which is done in advance but benefit has not yet taken by company so it is same like current asset of business and like all other current assets of business it’s balance is also debit balance.
It shouldn't be
debit prepaid insurance 11520credit cash 11520Debit Insurance Expense 1,920 Debit Prepaid Expenses 9,600 Credit Cash 11,520 This assumes the payment is made in the first month of coverage. If the payment is made before the coverage begins, the entire amount would be posted to Prepaid Expenses. If the payment was made after the coverage began (for example, in the second month of coverage), you would post the remaining number of months times 1,920 to Prepaid and the balance to Insurance Expense.
You should have a number or website that you can check your prepaid card balance. It also depends on what prepaid card you have. For example, if you have a Prepaid Visa card, you can opt to have your balance sent to your cell phone or e-mail address. If you don't have a prepaid Visa, then I'd suggest checking the back of your card for a phone number or website you could visit to view your balance. Hope this helps!