Prepayments Help
theox
Registered Posts: 1
If I am preparing a balance sheet for a single month say October 2010.
There is a prepayment for insurance of £12,000 which starts 17th October 2010 and ends 16th October 2011.
For the month of October 2010 do I record the prepayment for a full month or half a month since it starts half way through the month i.e. does it show as an asset as £11,000 or £11,500?
If anyone can help that would be greatly appreciated.
Theox
There is a prepayment for insurance of £12,000 which starts 17th October 2010 and ends 16th October 2011.
For the month of October 2010 do I record the prepayment for a full month or half a month since it starts half way through the month i.e. does it show as an asset as £11,000 or £11,500?
If anyone can help that would be greatly appreciated.
Theox
0
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