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

A/c entries 3979 views 1 replies

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

Replies (1)
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 .


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