LIC Policy
This query is : Resolved
17 June 2010
Respected Freinds,
I am an accountant of a individual having business. My client has taken out 20 different LIC policies for which an annula premium of Rs. 200000 is being paid every year. 1) Can i show the premium paid on the asset side of the balance sheet policy wise thereby strenthning my balance sheet instead of debiting it to Capital Account?
2)Also since i have maintained business books and personal books seperately, where will the effect of such transaction come. Payment is made out of business funds.
I am an accountant of a individual having business. My client has taken out 20 different LIC policies for which an annula premium of Rs. 200000 is being paid every year. 1) Can i show the premium paid on the asset side of the balance sheet policy wise thereby strenthning my balance sheet instead of debiting it to Capital Account?
2)Also since i have maintained business books and personal books seperately, where will the effect of such transaction come. Payment is made out of business funds.
17 June 2010
Debit Rs.200000/- in capital account as drawings (in business books) and credit the same in personal books in investment in firm and show amount of premium paid as investment in LIC Policies in assets side (in personal books)
18 June 2010
premium paid out of business fund is the Drewing debit in capital account.....
premium paid can not be shown on the asset side of the Balace sheet:
In india Life insurance Policy Consist of two parts i.e. Insurance Risk portion and investment portion.....
Only investment portion i.e. Surrender value of the Policy can be shown in the asset side of the Balance Sheet....
premium paid can not be shown on the asset side of the Balace sheet:
In india Life insurance Policy Consist of two parts i.e. Insurance Risk portion and investment portion.....
Only investment portion i.e. Surrender value of the Policy can be shown in the asset side of the Balance Sheet....
18 June 2010
Agreed with experts.
If the person has maintained business book and personal book seprately. It is better to shown LIC in book of balance sheet of Personal book.
In books of Business , Premium is treated as drawing.
If the person has maintained business book and personal book seprately. It is better to shown LIC in book of balance sheet of Personal book.
In books of Business , Premium is treated as drawing.
18 June 2010
agree with Mr. Bansal
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- About TDS & Income Tax
- Pass word to open justification report for Q1 for FY 2026-27
- PPF interest-As Exempt Income disclosure
- Section 194JA & JB Income which ITR Form to use
- Scrutiny and reopening of past returns
- Type of Capital Gain
- F & O PROFIT REPORTING FOR AY 2026-27
- Booth for sales promotion
- Difference in GSTR3B system generated which is correct and actual Payment it asks
- GST ON TRAVELLING BILLS
- TDS on Rent received on redevelopment of building
- Tax on Deemed Capital Gain
- Indian IT Portal issue in computing tax as per UK-India DTAA
- Capital Gains on sale of residential flat
- Upload Level ValidationITR3Category of Defect B/D
- PF Taxable Income
- Clarification on Tax Audit Applicability and Reporting of F&O Transactions in ITR-3
- Interest credited in FY2025-2026 & TDS therein by EPFO does not reflect in AIS or Form 26AS
- 44ad eligble money lending interest
- Taxation in the hands of Landowner under JDA
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
