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Accounting entry for mature lic policy premium not paid in the past years and maturity amount recei

Arunesh Kumar (ACCOUNTS OFFICER) (24 Points)

01 September 2021

what's accounting entry in the of a person when receive lic policy maturity amount , when policy premium payment amount shown in the books?

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prasad Nilugal ( GST Practitioner & Accounts ) (14200 Points)
Replied 01 September 2021

1) When you received LIC policy maturity amount then pass entries as follows .

Life Insurance Corporation A/c Dr
To LIC policy Maturity receipt A/c Cr
( Being LIC policy maturity amount receivable )

2) when actually you received amount entry will be

Bank A/c Dr
To Life insurance corporation A/c Cr
( being maturity amount received from L I C )

3 ) payment of monthly premium entry
L I C premium A/c
To Bank. A/c
( payment of premium )

If TDS applicable then TDS payable A/c will be credited in 1st entry .