Accounting for a single payment over 12 months

I have just paid roughly £3500 for vehicle insurance for a year. This is obviously showing up in Junes p & l a/c and distorting the figures. Can I have this showing in p & l in 12 equal monthly amounts, which would give more accurate figures? If so how?

Posted by Jeremy Bevan on Jun 20, 2012 4:37 PM BST

Hi Jeremy,

Yes - allocate the £3500 to a new asset account called 'Prepaid Insurance'. Then each month record a General Transaction from this account to the insurance expense account.

Regards,

Posted by Mark McLaren (Solar Accounts) on Jun 21, 2012 9:42 AM BST