Hi LeahB  

I hope you did find an answer to your question.

If not, my suggestion would be to post those entries based on the dates payments were withdrawn from the bank. This will make it easier to complete bank reconciliation and correctly split expenses in your financial reports.

Regards

JohnS.

When you pay the instalments you should credit bank and debit Prepaids which will carry the prepaid balance... then each month you enter the insurance expense by debiting Ins Expense and Credit the prepaid balance instead of bank because its already paid.

Instalments     Dr Prepaid   1333.33

                                    Cr Bank    1333.33

Monthly           Dr Insurance Exp   333.33

                                    Cr Prepaid      333.33

That will spread the expense out over the year rather than having it hit each time it is paid. Hope that makes sense!

Thank you. 

Thank you