Professional Services
Professional Indemnity Insurance — Monthly Amortization
Releasing one month of the prepaid PII premium to the income statement.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Professional Indemnity Insurance Expense | Expense (+) | 400.00 | - |
| Prepaid PII | Asset (−) | - | 400.00 |
💡 Accountant's Note
Each month, JOD 400 of the annual PII premium is recognized as an expense. This matches the cost to the period the coverage protects, regardless of the upfront payment date.
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