What is fire insurance premium? in retirement what is the treatment for : " out of fire insurance premium paid during one year rs 10000 be carried forward as unexpired ".


Sometimes ‚Äčthe business may buy a fire insurance policy to save itself from the loss in case of a fire accident. The business shall have to pay the premium on this policy which is commonly known as fire insurance premium.

Unexpired insurance means Prepaid Insurance. So, Rs 10,000 will be credited to Revaluation A/c (increase in assets) and Unexpired Insurance of Rs 10,000 will appear on the Assets side of the Balance Sheet.

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