Prepaid expenses are expenses which are paid in advance against which the services are not due. Insurance expenses is on example.
If an insurance premium is paid for the period from 1st July 2017 to 30th June 2018, the period from April 2018 to June 2018 is falling in the next financial year. Insurance premium for this period will be considered as prepaid insurance.
Prepaid Insurance is part of current assets and to be shown in the balance sheet.