Question

Insurance premium is paid for the year ending 1st Sept 2019 amounted to ₹1500 calculate prepaid insurance assuming that the year ending is 31st March 2019

Answer 1

Answer:

750 is prepaid Amount

Explanation:

Here 31st march is the year ending and insurance premium is paid till 31st Sept 2019

Therefore Prepaid Insurance = 1,500 x 6/12 = 750

                                                                    ↓

                                                     (since the period between 31st Mar 2019

                                                       and 31st Sept 2019 is 6 Months )

Answer 2

Given:

Year date = 1 sept 2019

Insurance premium amount = Rs. 1500

To Find:

Prepaid insurance assuming that year ending is 31st March 2019

Solution:

The time period between March to Sept  = 7 months

Thus, calculating insurance premium -

= 1500 x 7 /12

= 10,500/12

= 875

Answer: The prepaid insurance assuming that year ending is 31st March 2019 is Rs. 875.