Accounting treatment


This query is : Resolved 

Avatar

Querist : Anonymous

Profile Image
Querist : Anonymous (Querist)
27 April 2012 Sir,
Annual Fire Insurance premium of Rs 6000 was paid every year on 1st August, for the renewal of the policy. My Accounting Year Starts from 1st April,2010 to 31st march,2011.
what will be the treatment for the above in Profit & Loss A\C & Balance Sheet?

27 April 2012 You should charge to P/L only 4000/- and Rs. 2000/- should be shown as prepaid expenses in asset side of balance sheet.

Avatar

Querist : Anonymous

Profile Image
Querist : Anonymous (Querist)
27 April 2012 what will be treatment of prepaid Rs 2000 in next year.? how much total expenses charged in Profit & Loss a/c in next year..?

27 April 2012 Next year, 2000/- will be charged to P/L and again renewal premium will be bifurcated as done as in previous year.

Avatar

Querist : Anonymous

Profile Image
Querist : Anonymous (Querist)
27 April 2012 That means next year total will be charged in P\L A\c Rs 2000 (from last years advance) and Rs 4000 (from current year..Right..? Total Rs 6000.

28 April 2012 Yes, its right..


You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now



Similar Resolved Queries


loading


Unanswered Queries



CCI Pro



Answer Query



Company
ARTICLESHIP 07 October 2026
Article assistant

S.K.Bajpai & Co.

Noida

B.Com

View Details
Company
12 October 2026
Chartered Accountant - Internal Audit

HKC | Chartered Accountants & Business Advisors

Ludhiana

CA

View Details
Company
10 October 2026
Accounts Associate Level 1

Abic and Mani Chartered Accountants

Kottayam

B.Com

View Details
Company
ARTICLESHIP 30 September 2026
CA Article Assistant

CA Suraj Garg & Associates

New Delhi

CA Final

View Details
Company
ARTICLESHIP 28 September 2026
Junior Accountant

J S P M & Associates LLP

Pune

B.Com

View Details
Company
ARTICLESHIP 08 October 2026
ARTICLE TRAINEE

S.B.G. & CO. CHARTERED ACCOUNTANTS

New Delhi

CA Inter

View Details
Company
19 October 2026
Accountants/Articles (Freshers/Experienced)

ADY & CO.

New Delhi

Graduate (Any)

View Details
Company
12 October 2026
AUDIT , ACCOUNTS AND TAXATION

KDSS

New Delhi

B.Com

View Details