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    Question

    What should be the correct Journal Entry for booking

    premium income in case of Incoming coinsurance:
    A Premium Account Dr. To Leading Insurer Company’s Account Cr. Correct Answer Incorrect Answer
    B Leading Insurer Company’s Account Dr. To Premium Account Cr. Correct Answer Incorrect Answer
    C Premium Account Dr. To Cash/Bank Cr. Correct Answer Incorrect Answer
    D Cash/Bank Dr. To Premium Account Cr. Correct Answer Incorrect Answer
    E None of these Correct Answer Incorrect Answer

    Solution

    Leading Insurer Company’s Account Dr. To Premium Account Cr. Debit Leading Insurer Company’s Account as we need to receive premium from lead insurer Credit Premium Account as this is an income for the company.

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