? asked in 商業及金融稅金香港 · 9 years ago

Accrual and Prepayment 急!!!!!!

ABC Ltd has a financial year started from 1/1 to 31/12

A new insurance policy was bought on 1 March 2009

Annual insurance premium will be paid half yearly on 1 March and 1 September

Annual premium of insurance was $6000 for period 1 feb 2009 to 31 jan 2010

Annual premium of insurance was $4800 for period 1 feb 2010 to 31 jan 2011

Annual premium of insurance was $7200 for period 1 feb 2010 to 31 jan 2011

If the first payment of the insurance premium was on 1 March 2009

Prepare the insurance account for the year 2009 and 2010

PLEASE HELP ME!!!!!!!! THX A LOT^^

1 Answer

Rating
  • Gavin
    Lv 5
    9 years ago
    Favorite Answer

    Insurance $ $ 1/3/2009 Bank 3,000.00 31/12/2009 Prepayment 500.00 ($6,000 / 12 mths for Jan 2010) 1/9/2009 Bank 3,000.00 31/12/2009 P&L 5,500.00     6,000.00 6,000.00   1/1/2010 Prepayment 500.00 31/12/2010 Prepayment 400.00 ($4,500 / 12 mths for Jan 2011) 1/3/2010 Bank 2,400.00 31/12/2010 Prepayment 600.00 ($7,200 / 12 mths for Jan 2011) 1/3/2010 Bank 3,600.00 1/9/2010 Bank 2,400.00 1/9/2010 Bank 3,600.00 31/12/2010 P&L 11,500.00     12,500.00 12,500.00  

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