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A credit received from insurance

Sam B's Profile

Hi, We are using a control prepaid account, where all payroll WCB deductions get recorded as credit to the account and payroll expense account get debited. Also, WCB installments invoices get debited to the same account. At this year-end we have received a some amount from WCB for prior year adjustment as a credit. i booked the credit to the same account and now it is showing a credit balance to the asset account on the balance sheet. it will eventually be applied to the coming up installements but the year-end balance sheet is showing the negetive balance to the asset(prepaid account).
Please help me deal with the situation.


Topic Expert
Wayne Spivak
Title: President & CFO
LinkedIn Profile
(President & CFO, |

I'm not sure exactly what the problem is.

If the credit from the Insurance company was in CASH for a prior year,record it as "Other Income". Your bank balance will agree and your current year insurance payments will agree.


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