PPF Investment - Asset or Drawing in Personal Balance Sheet?

This query is : Resolved 
Quick Summary
This discussion explores the correct placement of Public Provident Fund (PPF) and Life Insurance Corporation (LIC) premiums on a personal balance sheet. The consensus leans towards treating PPF as a current asset, akin to a bank balance. For LIC premiums, the surrender value is suggested as the appropriate asset-side entry, rather than reducing capital like drawings. The query also touches upon whether TDS and advance tax should be classified as drawings.

Profile Image

Profile Image

(Querist)
06 May 2024 Hi,
I am trying to make my personal balance sheet. I deposited 1,50,000 Rs. in PPF.
Now will this amount show where :
1. Drawings on Liabilities side as well as on Current Assets side.
2. Only on Current Assets side.

Similarly what will be the treatment for LIC Premium.
I have salary income.
Profile Image

Gokul Sharma

Profile Image

Gokul Sharma (Expert)
06 May 2024 ppf should be in asset side.bank balance - and ppf +
Profile Image

Gokul Sharma

Profile Image

Gokul Sharma (Expert)
06 May 2024 lic premium will reduce from capital like drawings
Profile Image

Ankur Aggarwal

Profile Image

Ankur Aggarwal (Querist)
06 May 2024 Should LIC Premium also not go in asset side as surrender value of LIC policy?
Profile Image

Ankur Aggarwal

Profile Image

Ankur Aggarwal (Querist)
06 May 2024 Should i include TDS and Advance Tax in Drawings?
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now



Similar Resolved Queries


loading


Unanswered Queries


Trending Online Classes

view all classess

CCI Pro
Meet our CAclubindia PRO Members
Pro Member Biswajit SenguptaBiswajit SenguptaPro Member BIBIN KUMARBIBIN KUMARPro Member Ashish AgrawalAshish AgrawalPro Member rajeev koolwalrajeev koolwalPro Member SohanSohan
Subscribe to Pro
Join an elite circle of professionals



Answer Query



Quick Links



Browse by Category