The bookkeeper advised you that $7,392 paid to InsuranceCo on 19th July 2019 for business insurance was for the 12 months to the end of June 2020. You are required to create a manual journal entry to adjust the insurance expenses claimed for the month of July 2019 and the remainder($6,160+GST) to Prepayments. What will be the journal entry?

what amount should i write in the xero software, as i can nly put insurance dr, and prepayments cr.

The bookkeeper advised you that $7,392 paid to InsuranceCo on 19th July 2019 for business insurance was for the 12 months to the end of June 2020.

You are required to create a manual journal entry to adjust the insurance expenses claimed for the month of July 2019 and the remainder($6,160+GST) to Prepayments.

Manual Journal:

1. Narration: Adjust insurance payment for end of July 2019
2. Date:31 July 2019
3. Untick Show journal on cash basis reports
4. Auto Reversing N/A
5. Amounts are No Tax
6. First line: Insurance
7. Second Line: Prepayments
8. For marking purposes, please make sure your manual journal narration is: Adjust insurance payment for end of July 2019