The insurance premium is paid for the year ending on 1st September 201

1.	The insurance premium is paid for the year ending on 1st September 2019 amounted to ₹ 1500. Calculate prepaid insurance assuming that the year-end is 31st March 2019.
Answer» From 31st March to 1st September, 5 months period prepaid insurance amount we have to find. An insurance premium paid for the 12 months = ₹ 1500 ∴ for 5 months period it is 1500 × \(\frac{5}{12}\) = ₹ 625 Thus, prepaid insurance premium amount = ₹ 625.

The insurance premium is paid for the year ending on 1st September 2019 amounted to ₹ 1500. Calculate prepaid insurance assuming that the year-end is 31st March 2019.

Answer»

From 31st March to 1st September, 5 months period prepaid insurance amount we have to find.

An insurance premium paid for the 12 months = ₹ 1500

∴ for 5 months period it is 1500 × \(\frac{5}{12}\) = ₹ 625

Thus, prepaid insurance premium amount = ₹ 625.