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Where is insurance premium recorded in final accounts

At the end of any accounting period, the amount of the insurance premiums that remain prepaid should be reported in the current asset account, Prepaid Insurance. The prepaid amount will be reported on the balance sheet after inventory and could part of an item described as prepaid expenses.

Is insurance premium recorded in profit and loss account?

Refers to insurance premiums paid in advance\n\n The adjustment is done through an adjustment entry at the end of the accounting period. Adjustment entry helps ensure that proper insurance expense for the accounting period gets recorded in the profit and loss account.

Is insurance premium an expense or asset?

Insurance is an expense to a business and is carried as prepaid expense (paid in advance) under the head of current assets in the balance sheet of a company till it is paid. Asset refers to the amount one invests in resources, in order to earn value overtime on their invested amount.

Is insurance premium shown in balance sheet?

Premiums are normally paid a full year in advance, but in some cases, they may cover more than 12 months. When they aren't used up or expired, these payments show up on an insurance company's balance sheet. as a current asset.

Is insurance premium a debit or credit?

Is prepaid insurance a debit or credit? Generally, Prepaid Insurance is a current asset account that has a debit balance. The debit balance indicates the amount that remains prepaid as of the date of the balance sheet.