We have taken a vehicle Insurance for a period starting from 20/11/2012 to 19/11/2013 by paying a premium of Rs. 4060. But on 28/01/2013, we have sold the vehicle. Now we have to do the accounting for the same. How the Premium amount will be recorded in the books of Accounts. Whether we need to account for prepaid for the period from 01/04/2013 to 19/11/2013? What if we should not do prepaid as the vehicle is not with us. Shall we expense the complete amount in the year 2012-13 as Insurance Expenses?
CAclubindia
