alleryStart learning →Rs 18,000 premium paid on 1 October for twelve months. At the 31 March year end, prepaid insurance is
ARs 6,000
BRs 18,000
CRs 9,000
DRs 4,500
Answer & Solution
Correct answer: C. Rs 9,000
Six of the twelve months remain unexpired, so half of the premium, Rs 9,000, is prepaid.
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