Received from Aviva Life insurance for proprietor

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This discussion explains how to account for a payout received from Aviva Life Insurance, specifically when it relates to a proprietor's personal policy. The recommended journal entry involves debiting the bank account and crediting either an 'LIC Premium/Investment' or 'Interest on LIC/LIC Premium' account, with the implication that the capital account would ultimately be credited. This method is considered appropriate as it pertains to personal insurance for the proprietor.

Daya

Daya (Querist)
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12 January 2023 Amount received from Aviva life insurance , how to entry in my books of accounts.
can I Pass journal entry of Bank receipt
Suppose Rs. 1,50,000/-
Bank A/c Dr.
To LIC Premium/ Investment A/c
to Interest on LIC/LIC premium A/c