Question

X’ purchases a 5 years lease for Rs.10, 000 and arranges for its renewal by means of insurance policy, the annual premium being Rs. 1,850. The value of the policy increases each year by 4%.Show the necessary accounts (Policy Account) for 5 years. Presuming that the renewal of the lease costs Rs. 9,500




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Answer 1

Answer:

the renewal coast is 33.33