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Point a. All India Insurance Company received an insurance premium of Rs 50 lacs on an insurance policy whose coverage extends till the mid of the next accounting year.
Point b. Additionally, the company has a monthly salary expense of Rs 25 lacs. For the accounting year ended on March 31, 2019 the company paid 275 lacs on account of salary. The salary for the month end is paid in the first week of April 2019.
Question 1: Discuss the treatment of both of these payments in the books and disclosures in the financial statements, as on 31st March 2020
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