Question

Indian Insurance Co. Ltd. on 31.12.20X1 had reserve for unexpired risk of 20 crores in respect of fire insurance business. During 20X2, the premium collected in respect of policies issued 43.70 crores. Pass journal entry.

A Fire Revenue A/c Dr. 23.7 To Unexpired Risks Reserve A/c 23.7
B Fire Revenue A/c Dr. 1.85 To Unexpired Risks Reserve A/c 1.85
C Unexpired Risks Reserve A/c 1.85 To Fire Revenue A/c Dr. 1.85
D Unexpired Risks Reserve A/c 23.7 To Fire Revenue A/c Dr. 23.7
E None of the above
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