Question

A firm has paid insurance premium
of Rs 12,000 for the year 2018-19,
out of which Rs 3,000 is related to
the next year 2019-20. What
amount of insurance premium to
be debited to profit and loss A/c
for the year 2018-19?

*12000
*9000
*15000
*10000​

Answer 1

Answer:

"*" (and any subsequent words) was ignored because we limit queries to 32 words.

Answer 2

Answer:

insurance premium 12000

-prepaid. 3000

______________________

9000

this entry in profit and loss a/c

and because of adjustment second entry will in balance sheet in asset side prepaid insurance (3000)