Question
A fire insurance policy was issued for one year on 1st
January 2024 with a total premium of ₹1,20,000. The insurer recognizes revenue on a time-proportion basis. How much premium will be recognized as income in the year ending 31st March 2024?Solution
Jan to Mar = 3 months → 3/12 × ₹1,20,000 = ₹30,000
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...
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