Q no1} my question is which type of account is joint life policy a/c?
Q no2}
joint life policy A/C DR 16200
To A`s capital A/c 5400
To b`c capital A/c 5400
To c`s capital A/c 5400
[being the balance of joint life policy
distributed among partner}
My question is in above entry is that why joint life policy a/c is debited and partner capital a/c is credited? Please solve my doubt.
Devadas K S
(One life one Dream)
(3525 Points)
Replied 31 July 2011
Q no2}
During retirement or death of a partner JLP received is divided among partners..........
JLP is received so it is Debited and it is the right of partners so it should be added with capital(unless it is settled privately) so Credited to Partner's capital a/c........
Jag Bhushan Sharma
(Faculty in a B-School)
(633 Points)
Replied 02 August 2011
1) JLP is an asset.
2) The journal entry shwn by you is made to bring a previously unrecorded JLP into books. If you still need to know more above it, you are most welcome.
CAclubindia
