Car insurance Charges

You pass entry as follows

Insurance Expense A/c Dr 2451
prepaid Insurance Exp A/c Dr 74529
To Bank A/c. Cr 76980
( Being insurance exp paid )

on 31/3/2021 your Debit of prepaid Insurance balance will be carried forward next F.Y.

Next year pass following adjustment entry monthly portion up to March 22

Insurance Expense. A/c Dr
To prepaid Insurance Exp A/c Cr
( Being Insurance Exp adjusted paid last year )

prepaid Insurance A/c will be under Asset side Balance sheet

Originally posted by : Naveen Kumar
	Dear Sirplease suggest below entry in books of account is correct We have done car insurance period 19 March 21 to 18 March 22entry in booksinsurance exp. 2541 up to March 21prepaid insurance 74529insurance exp payable 77069

Yes, you are right

Yes , your Booking entry is correct . My mistake due oversight is regretted .