Question

In case of insurance companies the legal fees with respect of claims is shown in

• A. revenue a/c
• B. P&L a/c
• C. P&L appropriation a/c
• D. Balance sheet

Answer 1

Answer:

A. revenue a/c

Revenue Account is prepared under Mercantile System of Accounting. 

Items appearing in Revenue Account: Premiums: General insurance policies are issued for a short period, say, for a year.