Question

prepaid insurance rupees 2000 for 3 years . what is the adjustment of this ques??
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Answer 1

Answer:

6000

Explanation:

Answer 2

Explanation:

On the date of Payment:

• On the date of Payment:Debit Prepayment (Prepaid Insurance) Rs. 2,000
• On the date of Payment:Debit Prepayment (Prepaid Insurance) Rs. 2,000Credit Mode of Payment (Cah or Bank cheque) Rs. 2,000
• On the date of Payment:Debit Prepayment (Prepaid Insurance) Rs. 2,000Credit Mode of Payment (Cah or Bank cheque) Rs. 2,000On The date of realization of the prepaid insurance:
• On the date of Payment:Debit Prepayment (Prepaid Insurance) Rs. 2,000Credit Mode of Payment (Cah or Bank cheque) Rs. 2,000On The date of realization of the prepaid insurance:Debit Insurance Expense Rs. 2,000
• On the date of Payment:Debit Prepayment (Prepaid Insurance) Rs. 2,000Credit Mode of Payment (Cah or Bank cheque) Rs. 2,000On The date of realization of the prepaid insurance:Debit Insurance Expense Rs. 2,000Credit Prepayment (Prepaid Insurance) Rs. 2,000
• On the date of Payment:Debit Prepayment (Prepaid Insurance) Rs. 2,000Credit Mode of Payment (Cah or Bank cheque) Rs. 2,000On The date of realization of the prepaid insurance:Debit Insurance Expense Rs. 2,000Credit Prepayment (Prepaid Insurance) Rs. 2,000Hope My Answer Helps