Question

Great Insurance Co. Ltd. on 31.12.2022 had reserve for unexpired risk of 5 crores in respect of miscellaneous business. During 2023, the premium collected in respect of policies issued 9 crores. Pass journal entry.

A Miscellaneous Revenue A/c 0.50 To Unexpired Risks Reserve A/c Dr. 0.50
B Miscellaneous Revenue A/c 5 Cr To Unexpired Risks Reserve A/c Dr. 5 Cr
C Unexpired Risks Reserve A/c Dr. 0.50 To Miscellaneous Revenue A/c 0.50
D Unexpired Risks Reserve A/c Dr. 0.50 To Miscellaneous Revenue A/c 0.50
E None of the above
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