Case Study
Suppose a child attending a camp "fun times"
suffered an injury. the camp pays 9,000 for the kids medical care as the camp has no insurance. The camp now wishes to take out an insurance to avoid such a large payout in the future. Eventually finding the cheapest quote at 2,000. This is in the form of an invoice from "Insure your Camp Pty Ltd".
Question
The owners have recorded 2000 as a debit to insurance and a credit to "Insure your camp Pty Ltd". Is this correct? and why
2007-08-14 00:06:28 · 1 answers · asked by saeriksen 2 in Business & Finance ➔ Other - Business & Finance
A quote is not a contract. If all they received was a quote to which they have not agreed to and signed on, then there is no contract, regardless of the form the quote may have taken. The owners should look at other quotes to compare the benefits. The cheapest quote may not be the best. In any case they should take up the accounting entry only after they've signed on the dotted line.
2007-08-14 03:26:48 · answer #1 · answered by Sandy 7 · 0⤊ 0⤋