Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 19 - No. 13)
What will the entry for the prepaid insurance include?
Debit Cash, Credit Prepaid insurance.
Debit Prepaid insurance, Credit Cash.
Debit Expense, Credit Prepaid insurance.
Debit Prepaid insurance, Credit Expense.
Explanation
Prepaid insurance is debited and cash is credited to show the payment.
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