Lic premium

J.SINGH (ACCOUNTANT) (61 Points)

04 June 2016  

DEAR EXPERT,

DURING THE PAST COUPLE OF YEARS LIC PREMIUM PAID BY THE PARTNER HAS SHOWN TO DEBIT SIDE IN HIS PERSONAL BOOKS WHEREAS IN BUSINES BOOKS IT WAS SHOWN AS WITHDRAWLS.

NOW I WANT TO KNOW THAT LIC PREMIUM IS AN INVESTMENT AND IT SHOULD BE SHOWN IN BALANCE SHEET IN PERSONAL BALANCE SHEET.

HOW WHAT WILL THE CORRECT JOURNAL ENTRY NOW OF PAST YEAR LIC PREMIUM MADE TO DEBIT SIDE IN THE PERSONAL BOOKS

REGARDS

J SINGH