04 May 2011
why do we call unexpired insurance as representative personal account, when the amount has been fully paid and definite of incurring in the short term ?
when it is no more encashable is that is correct ?
07 May 2011
It is because at the end of that financial year the amount is an advance paid to the Insurance Company. I agree that the money is not going to be received back, but for that money paid in advance, we shall receive the risk coverage from the Insurance Company till the date on which the annual insurance shall expire.
CAclubindia
