- 12 Marks
FA – L1 – Q37 – Accruals and prepayments
Write up the insurance account for Vulcan's removal business for 20X9, including prepayments and multiple insurance payments.
Question
Vulcan owns a removal business and runs a small fleet of vans. He prepares his accounts to 31 December each year.
The following transactions occur in relation to insurance for the year 20X9.
1 January: The amount prepaid for insurance was GH¢1,140,000.
1 April: He paid GH¢840,000 insurance for the year ended 31 March 20Y0 on six of the vans.
1 May: He paid GH¢3,540,000 insurance for twenty vans for the year ended 30 April 20Y0.
1 July: He paid GH¢560,000 insurance for the remaining vans for the year ended 30 June 20Y0.
Required:
Write up the insurance account for the year ended 31 December 20X9.
Find Related Questions by Tags, levels, etc.
Report an error
