269B – Prepaid Insurance

Current Assets

Prepaid Other

Synopsis

Account 269B

Debits

Credits

  1. The cost of expenses paid for in advance of the current month.

  1. The cost of expenses paid for in advance and applicable to the current month.

 

Remarks:

Account 269B – Prepaid Insurance – should include all payments made in advance for insurance that will cover a future period.  Prepaid Advertising should be relieved each month for the amount applicable to that month and expensed to insurance expense accordingly.

 

All prepaid accounts should be scheduled, reconciled monthly, and details maintained until the asset is relieved.

Note: