Prepaid Insurance credit side q aaya yeh toh debit side insurance m se minus hota h na?? Paga no. 7.42 final account unit 1 illustration no. 7.. please tell me anyone

Sahil · 14 Jun 2024

It's because the insurance is already included in the calculation of the profit, you are making PNL A/C only for those two transactions, and as there is no insurance on debit side from where will you subtract the prepaid insurance, and subtracting it from the insurance or posting it on the credit side has the same effect that's why