Dakshayini posted an Question
February 06, 2021 • 01:49 am 30 points
  • UGC NET
  • Commerce

Unexperide insurance premium should be created as

unexperide insurance premium should be treated as wt

2 Answer(s) Answer Now
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    Ronak kumari upadhyay Best Answer

    current asset definitely..mark as best if query is solved

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    tnk u dakshayini

  • Rucha rajesh shingvekar best-answer

    Unexpired insurance is an another term which is used for prepaid insurance. Prepaid insurance is deducted from the insurance premium expenses account in profit & loss account and shown in balance sheet as current assets.  For example, if an insurance premium of Rs.1200 is paid for the period from 1st July 2017 to 30th June 2018, an amount equal to Rs.300 (for 3 months , April, May,June 2018) is unexpired as it is not pertaining to the current financial year 2017-18. Its a representative personal account. These accounts are not in the name of a specific person but are represented as personal account.

  • comment-profile-img>
    Ronak kumari upadhyay

    Dear student Expired insurance premiums are reported as Insurance Expense. Unexpired insurance premiums are reported as Prepaid Insurance (an asset account). I am sure I answered ur query.

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    current asset or non current asset

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    Any insurance premium costs that have not expired as of the balance sheet date should be reported as a current asset such as Prepaid Insurance. The costs that have expired should be reported in income statement accounts such as Insurance Expense, Fringe Benefits Expense

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