Year ending December 08 - Prepaid insurance 4500.

31 March 09 - Paid 4800 for half the properties upto 31 March 2010.
30 Sept 09 - Paid 5300 for the other half of the properties upto 30 Sept 2010.

How do i go about writing up the insurance accounts from this data? :/

Please help - Thank you!!!!!

Prepayment at 31 December 2009:

Payment 4,800 for the period 1/4/09-31/3/10. 3 months of that payment is for after the year end, therefore you prepay 3 months = 4800x3/12 = 1,200

Payment 5,300 for the period 1/10/09-30/9/10. 9 months of that payment is for after the year end, therefore you prepay 9 months = 5300x9/12 = 3,975

Total prepayment = 1200+3975 = 5,175

Insurance charge = 4500+4800+5300-5175=9,425

————- Insurance Account——————

08 bal b/d 4500 |
31 3 09     4800 | . . (P&L) 9425
30 9 09     5300 | . . . . . . 5175

. . . . . . . 14600 | . . . . .  14600  
09 bal c/d 5175 |

your a star! btw shouldnt this expense account be in credit if it is to show a prepayment? Or do i leave the balance in the credit side? accruals and prepayments really tear up my fragile brain!! Your help is very very appreciated, cant thank you enough!

Debit side 4500, 4800, 5300

Credit side 9425, 5175

Best I can do from posting on my mobile!

x_wanted_x - February 25 2010 01:31 PM

————- Insurance Account——————

08 bal b/d 4500 |
31 3 09     4800 | . . (P&L) 9425
30 9 09     5300 | . . . . . . 5175

. . . . . . . 14600 | . . . . .  14600  
09 bal c/d 5175 |

your a star! btw shouldnt this expense account be in credit if it is to show a prepayment? Or do i leave the balance in the credit side? accruals and prepayments really tear up my fragile brain!! Your help is very very appreciated, cant thank you enough!

I edited it lol

If your on a mobile.. how on earth do you do this mentally lol.

x_wanted_x - February 25 2010 01:59 PM

x_wanted_x - February 25 2010 01:31 PM

————- Insurance Account——————

08 bal b/d 4500 |
31 3 09     4800 | . . (P&L) 9425
30 9 09     5300 | bal c/d 5175

. . . . . . . 14600 | . . . . .  14600  

09 bal b/d 5175 |

x_wanted_x - February 25 2010 01:31 PM

————- Insurance Account——————

08 bal b/d 4500 |
31 3 09     4800 | . . (P&L) 9425
30 9 09     5300 | . . . . . . 5175

. . . . . . . 14600 | . . . . .  14600  
09 bal c/d 5175 |

your a star! btw shouldnt this expense account be in credit if it is to show a prepayment? Or do i leave the balance in the credit side? accruals and prepayments really tear up my fragile brain!! Your help is very very appreciated, cant thank you enough!

Having entered the prepayment on the credit side and balanced off the account, the prepayment is brought forward on to the debit side in the new period.
Therefore the account is in debit (not credit, as you suggest).