09 January 2014
If i got a Insurance in Sep 13 of Rs. 100/- for one year then it will be calculated as prepaid insurance like - 100/12(months)= 8.33*7(Sep to March)= 58.33,
100-58.33=41.66
Now 41.66 Rs is countable as Prepaid Insurance is it or not?
If not then how can we calculated Pre-paid Insurance?
09 January 2014
Yes. your calculation is correct. basically it can be calculated based on days of coverage of insurance policy, since the premium amount is very less, you can calculate monthly,it will not give big difference
CAclubindia
