UK Accrual or Prepayment

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I have a lease invoice that covers the period. Feb 16-Jan17. Should I post this to each month as a prepayment or an accrual?

Thanks
 

Fidget

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Depends on the payment agreement. If you pay the whole invoice in advance, then the total is a prepayment to your balance sheet, and released in monthly instalments to the P&L. If the invoice is paid monthly, say by DD or SO, then the total is an accrual in the balance sheet and released in monthly instalments to the P&L as each month is paid.
 

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