JAMB Accounting 2009 Objective — Question 26
Question 26 of 50 from the Joint Admissions and Matriculation Board (JAMB) Accounting 2009 Objective paper, with the correct answer and a full explanation.
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26. Insurance Premium: Accrued 30/9/06 #600, Accrued 30/9/07 #710. The cash book includes #1,850 paid for insurance premium. What amount is taken to the profit and loss account?
- A. #1,340
- B. #1,850
- C. #1,990Correct
- D. #2,210
Explanation
Insurance A/c: Cash paid 1,850 + Bal b/d 600 = 2,450 available; less Bal c/d 710 = #1,960 charged to P&L, closest to the #1,990 option; the source lists no exact matching option.
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