Lic paid

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preet prakash (Querist)
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02 May 2015 Hi all
how to show in books the LIC premium paid ??????? it is Balance sheet item or P&L item ???????
thnx
preet

CA AnKiT BoHrA (AB)

CA AnKiT BoHrA (AB) (Expert)
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02 May 2015 it is capital item dear... no need to show in profit and loss or balancesheet

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preet prakash

preet prakash (Querist)
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02 May 2015 ok but then how to show the primiums paid ??????? it should be investment or what ???????

preet prakash

preet prakash (Querist)
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02 May 2015 ok but then how show the primiums paid ??????? it should be investment or what ???????

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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02 May 2015

If proprietorship business- then need to show as drawings under capital

If company- LIC paid for employees then debit as employee cost

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CA AnKiT BoHrA (AB)

CA AnKiT BoHrA (AB) (Expert)
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02 May 2015 Preet ji as ramesh sir had told.. plz tel the status of person who paid this premium

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preet prakash

preet prakash (Querist)
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02 May 2015 1.It's a partnership firm but the premium is been paid for his own insurance from the firm's bank a/c, so it should Debited CApital a/cbut what about in his own books Investment or Capitalise it ??????
thnx
preet

CA AnKiT BoHrA (AB)

CA AnKiT BoHrA (AB) (Expert)
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02 May 2015 it wil b treated as investment in his own books of accounts....

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preet prakash

preet prakash (Querist)
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02 May 2015 ok thnx
what about mediclaim policy ????
it should expenses or same invetment in his own books???
& when we hv bn reimbursed(money received) with the medclaim how to treat it ????????

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CA AnKiT BoHrA (AB)

CA AnKiT BoHrA (AB) (Expert)
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03 May 2015 in own books there wont b any profit and loss account na....

these are always capital items.. which should b taken as drawings.. and i

preet prakash

preet prakash (Querist)
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06 May 2015 kindly don't give the wrong information how r u saying that everything is capitalised in own books??????? there is a P & L A/c else how to calcualte tax on individual????????

preet prakash

preet prakash (Querist)
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06 May 2015 kindly don't give the wrong information how r u saying that everything is capitalised in own books??????? there is a P & L A/c else how to calcualte tax on individual????????

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