Insurance paid
gaddala ramesh (166 Points)
24 May 2023
max life insurance paid is capital or expenditure
3 Replies
prasad Nilugal
( GST Practitioner & Accounts )
(14870 Points)
Replied 24 May 2023
Life Insurance is personal expenses, paid from business will be Debited to Capital A/c of Sole proprietor .
Max Life Insurance A/c Dr
Cash. A/c / Bank Cr
( paid for life insurance from Business)
Capital A/c Dr
To Max Life Insurance Cr
( Transfer entry)
sabyasachi mukherjee
(27740 Points)
Replied 25 May 2023
Insurance paid is a revenue expenditure except for other cases where it forms part off cost or capital expenditure.
prasad Nilugal
( GST Practitioner & Accounts )
(14870 Points)
Replied 25 May 2023
If Company paid Insurance primium on behalf of employee, then it's revenue expenditure to Company and will be debited to P & L A/c otherwise Life Insurance is personal expenses .
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