Question

journal entry of out of insurance premium paid this year ₹15000 is related to next year

Answer 1

"Journal Entry:

Prepare insurance a/c dr Rs 15000

To insurance a/c Rs 15000

Since insurance are paid to the period that covered the premium, it will be debit prepaid insurance to credit cash from the total amount paid.

Hence, the prepaid amount will expire when the balance is reduced by a credit to prepaid insurance.

"

Answer 2

Answer

Prepaid insurance a/c dr. 15000

To insurance a/c. 15000

(Insurance premium paid this year related to next year)