Question

Insurance paid 4,000 (including premium of 3,000 per annum paid upto 30
June, 2009). What will be the adjusting closing entry necessary as on 31st
March, 2009:

a)10 Insurance Prepaid A/c Dr. 750
To Insurance A/C 750


(b) Insurance A/C Dr. 750
To Insurance Prepaid A/c 750


(c) Insurance A/C Dr. 4,000
To Cash A/C 4,000


(d) Insurance A/C Dr. 3,000
To Cash A/C 3,000​

Answer 1

Answer:

options a is right answer