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Question 22 of 27 3.0 Points On 1 April 20.17 Trak Traders took up an insurance contract with Blue Sky Insurers for 24 months. The

Question 22 of 27

3.0 Points

On 1 April 20.17 Trak Traders took up an insurance contract with Blue Sky Insurers for 24 months. The insurance policy was effective with immediate effect and stipulated that all premiums for a year (a period of 12 months starts from 1 April each year) are due by 1 April each year.

An extract from the list of balances of Trak Traders at year-end, reflected the following balances:

28 February 20.19

28 February 20.18

Premiums paid during the year ended

*R17 472

*R15 996

*payments for 12 months *payments for 12 months

The amount for insurance premiums and the short-term adjustment to be disclosed in the financial statements of Trak Traders will be

  • A.

Statement of profit or loss and other comprehensive income for the year ended 28 February 20.19

Statement of financial position as at 28 February 20.19

R18 805

R1 333

  • B.

Statement of profit or loss and other comprehensive income for the year ended 28 February 20.19

Statement of financial position as at 28 February 20.19

R17 472

R2 789

  • C.

Statement of profit or loss and other comprehensive income for the year ended 28 February 20.19

Statement of financial position as at 28 February 20.19

R17 349

R1 456

  • D.

Statement of profit or loss and other comprehensive income for the year ended 28 February 20.19

Statement of financial position as at 28 February 20.19

R16 016

R1 456

  • E.

Statement of profit or loss and other comprehensive income for the year ended 28 February 20.19

Statement of financial position as at 28 February 20.19

R17 472

R1 333

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