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Lic premium entry
lic premium every year we pay now entry plz and after maturuty entry plzzz
Replies (12)
Quick Summary
Lic premium a/c dr
to Bank a/c
Bank a/c dr
to Lic maturity proceeds a/c
to Bank a/c
Bank a/c dr
to Lic maturity proceeds a/c
Yes, you can follow above stated entry in B.O.A
1) Show LiC premium under Indirect Expense in Profit and Loss Account when you pay .
2) And Show under Indirect Income when you receive after maturity .
2) And Show under Indirect Income when you receive after maturity .
LIC premium paid is a personal expenditure. It is passed through capital account.
Yes , But paid by the company in the benefits of the employee will be Revenue Expenditure and accordingly I answered .
It is not clear in the query , paid by whom .
It is not clear in the query , paid by whom .
If it is paid by the sole proprietor then entry will be
1) Capital A/c Dr
To Lic Premium A/c Cr
( Being personal premium paid )
2) After maturuty receipt entyr will be
Bank A/c Dr
To Capital A/c Cr
( Receipt of LIC maturuty amount )
Of course first entry in case of Sole proprietor wil be
Lic Premium A/c Dr
To Bank A/c Cr
( payment made )
Then transfer to capital account
Yes .....
Mr Sourav
You only said Yes , so above entry correct or not ?.
You only said Yes , so above entry correct or not ?.
Yes entry is correct after entry lic amount should be transferred to capital account
Ok ..........................
Ok....
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