How To Treat Insurance Premium In Final Accounts. You will get a loan. You will then have to pay the obligation on time so you don't default on your loan.
Dr the ‘insurance prepaid” account and cr “the bank account with the actual amount paid to the insurance company. Salaries outstanding for december, 2016 amounted to rs. It also needs to be adjusted to notice the trend during the accounting year, in which incident took place.