Prepaid Insurance
This query is : Resolved
CS Ashish Jain
(Querist)
25 August 2010
I want to know that on what basis prepaid insurance is to be allocated. on the day basis or months basis.
If an insurance policy was taken for Rs.1 Lac on 18 may of the F.Y. for the period of 1 year. it means for the 1 month month 17 day will fall in the next year. so how to calculate the prepaid insurance amount.
If an insurance policy was taken for Rs.1 Lac on 18 may of the F.Y. for the period of 1 year. it means for the 1 month month 17 day will fall in the next year. so how to calculate the prepaid insurance amount.
CA Kalpesh Gokani
(Expert)
25 August 2010
Yes on days basis.
100000*47/365=12877 prepaid insurance for next year
100000*47/365=12877 prepaid insurance for next year
25 August 2010
Day basis is the most appropriate method
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