Sir.
we have issue cheque of national insurance co. for stock insurance please provide the name of group in which I creat the ledger of national insurance co.
If you are paying premium on insurance, create a premium account in ledger..
If you are receiving a claim through cheque, there should already be a National insurance co. (debtor/receivables) Ledger.
The above is correct because you don’t need a provision for insurance as the occurrence of claims is very rare. Next, since prepaid insurance is a real asset, create a separate account if you want to keep track of the expenses under current assets. Then add insurance premium account to indirect expenses account
CAclubindia
