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A business paid the insurance premiums of $18400 during the year ended 31 March 20X7. At 1 April 20×6 there was a prepayment of $1800 and at 31 March 20X7 there was a prepayment of $1920.
What was the insurance expense for the year ended 31 March 20X7
Please do not simply type out full questions and expect to be provided with a full answer. You must have an answer in the same book in which you found the question, so in future ask about whatever it is in the answer that you are not clear about and then I will explain.
The answer is 1,800 + 18,400 – 1,920 = $18,280.
However I do suggest that you watch my free lectures on this because this is a very basic question (questions in the exam will be much more difficult).
The lectures are a complete free course for Paper FA and cover everything needed to be able to pass the exam well.
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