Question

Insurance premiums rs.20,000prepaid insurance premium rs.3000. calculated the insurance premium to be debited to income and expenditure account

Answer 1

Answer:

Explanation:

The calculations of Insurance premium for the year will be as under:-

Total Insurance paid during the year                     20,000.00

Minus prepaid insurance (relates to next year)        3,000.00

Insurance premium for the year will

   be debited to income and expenditure a/c      17,000.00