Where Is Insurance Recorded In Final Accounts. Payment for “insurance premium” is commonly issued in advance hence it will be used to explain the treatment of prepaid expenses in final accounts (or) financial statements. These additional or further bad debts are recorded by the following entry before the preparation of final accounts:
(a) stock on 31st march, 2018 was valued at ₹ 1,50,000. Expired insurance premiums are reported as insurance expense. Trading, profit & loss account and balance sheet, all these three together, are called as final accounts.