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Details of a company’s insurance policy are shown below:
Premium for year ended 31 March 2006 paid April 2005            $10,800
Premium for year ending 31 March 2007 paid April 2006           $12,000
What figures should be included in the company’s financial statements for the year ended 30 June 2006?
              Income statement                            Balance sheet
                         $                                                   $
A                  11,100                                     9,000 prepayment (Dr)
B                  11,700                                     9,000 prepayment (Dr)
C                  11,100                                     9,000 accrual (Cr)
D                  11,700                                     9,000 accrual (Cr)

A

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