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preet prakash (Querist)

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)

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)

02 May 2015 ok but then how to show the primiums paid ??????? it should be investment or what ???????

preet prakash

preet prakash (Querist)

02 May 2015 ok but then how show the primiums paid ??????? it should be investment or what ???????

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)

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)

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)

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)

02 May 2015 it wil b treated as investment in his own books of accounts....

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preet prakash

preet prakash (Querist)

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)

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)

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)

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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