LIC ON BS

Usually life insurance policies are not accounted in BS, while premium paid is debited to capital account as personal expense.

Sometimes, people declare sum assured under policy as investment, by adding equal amout to capital.

Not recommended. As the maturity or claim amount received is tax-exempt, so it is directly added to BS.......... and many times in the account of beneficiary, so usually the insurance policies are not declared in BS.

But is required for any purpose, sum assured amount is declared under investment.

PREMIUM PAID IS SHOWN AS EXPENSE DEBIT SIDE OF BS 

AND THE SAME IS ELIGIBLE FOR DEDUCTION U/S 80 C