Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 8 - No. 32)

On 1st October, Kamal had paid an insurance company to a bill a premium of $900 to provide insurance cover for his bakery's store the next 12 months. The cost of the insurance billed to be $30 September. How much insurance for this year?
$900
$300
$600
$450

Explanation

$900 / 12 = $75 per month. $75 x 8 months is $600

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