Question

create accounting equation for the following transaction
1.insurance premium paid₹3000.
2.out of insurance premium paid, prepaid is ₹500​

Answer 1

Answer:

1. Insurance premium A/c Dr. 3000

To cash A/c 3000

(Being insurance premiums paid)

2. Prepaid insurance A/c Dr. 500

To cash A/c 500

(Being prepaid insurance premiums)