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An annual insurance for R 1 2 0 0 0 0 was paid by the company on 1 September 2 0 2 0 . As

An annual insurance for R120000 was paid by the company on 1 September 2020. As at financial year end, the accountant prepared only the following journal. Dr Prepaid Insurance R120000 and Credit Cash R120000. Explain if the scenario violated the qualitative characteristics, assumptions or principles under the conceptual framework. Your answer should be supported with correct journal entry as at 30 September 2020.

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