The Book-keepers Forum (BKF)
The Book-keepers Forum (UK) -> Professional Book-keepers in Practice -> Year End journal entries and prepayments
Post Info TOPIC: Year End journal entries and prepayments
einna


Newbie

Status: Offline
Posts: 4
Date:
Year End journal entries and prepayments
Permalink  

Hi Everyone,

My question is to do with year end and opening balances on the P/L. My insurance expense is appearing as a negative on the balance sheet for Q1 2024 and using the journals I used below will this wash out through the year or did I make an error in my timings.  I recorded the accrual expense on 31st Dec 2023 for insurance as;

DR Insurance Exp 1200

Cr Acc Exp 1200

 

Then on the 01st Jan 2024 Reversed the expense;

Dr Acc Exp 1200

Cr Insurance Exp 1200

 

I wanted to record the invoice and did so on the 03rd Jan 2024 as;

Dr Exp 1200

Cr A/P 1200

 

Made the payment that day;

Dr A/p 1200

Cr Bank 1200

 

I wanted to record the insurance over 12 months as a prepayment;

Dr Prepayment 1200

Cr Insurance Exp 1200

 

So over the following 3 months I have 

Dr Insurance Exp 300

Cr Prepayment         300

 

 

However my expense on the p/l is appearing as Negative 900, rather than positive 300 to show the insurance expense in real time. Will this wash out or Do I need to remove a journal?

 

 



__________________
Page 1 of 1  sorted by
 
Quick Reply

Please log in to post quick replies.
The Book-keepers Forum (UK) -> Professional Book-keepers in Practice -> Year End journal entries and prepayments
Tweet this page Post to Digg Post to Del.icio.us
Members Login
Username 
 
Password 
    Remember Me  
©2007-2024 The Book-keepers Forum (BKF). All Rights Reserved. The Book-keepers Forum (BKF) is a trading division of Bookcert Ltd. Registered in England Company Number 05782923. 2 Laurel House, 1 Station Rd, Worle, Weston-super-Mare, North Somerset, BS22 6AR, United Kingdom. The Book-keepers Forum and BKF are trademarks of Bookcert Ltd. This forum is a discussion forum only. There will usually be more than one opinion to any question and any posting should not be viewed as a definitive solution. No responsibility for loss occasioned to any person acting or refraining from action as a result of any posting on this site is accepted by the contributors or The Book-keepers Forum. In all cases, appropriate professional advice should be sought before making a decision. We reserve the right to remove any postings which are offensive, libellous, self-promoting or engaged in covert marketing. We will not notify users of removals. The views expressed in the forum posts are those of the individual and do not necessary reflect or agree with those of The Book-keepers Forum. Any offensive or unsuitable posts will be removed by the moderators. Any reader of this forum can request for a post to be looked into by sending an email to: bookcertltd@gmail.com.

Privacy & Cookie Policy  About