Menu
Insurance paid
max life insurance paid is capital or expenditure
Replies (3)
Quick Summary
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)
Insurance paid is a revenue expenditure except for other cases where it forms part off cost or capital expenditure.
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 .
Recent Topics :
- Capital Gain on sale of Depreciated Factory Gala
- Interesting Observation from a Recent Income Tax S
- ITR 3 Utility Not Taking Marginal Relief on Net To
- MV Electrosystems IPO Allotment Date, Status Check
- TDS payment code query
- Query on FLAIR return
- Itr 4 problem
- Capital Gains Mismatch Due to Sale Agreement in FY
- REGARDING NRO INVESTMENT IN SHARES OF DOMESTIC COM
- DTAA benefits
Related Topics :
CAclubindia
