passwella.
Menu

WAEC Financial Accounting 1992 Question 13

Question 13

Accruals and Prepayments

A trader paid insurance premium of ₦1,350 for 15 months ended 31st March 1991. He prepares account to 31st December.

How much is carried in the Balance Sheet at 31st December 1990?

  1. A.₦1,350
  2. B.₦1,080
  3. C.₦338
  4. D.₦270
  5. E.₦90.
Show the answer and explanation

Answer: D (₦270)

Explanation

January–March 1991 is paid in advance: 3 × ₦90 = ₦270.