Life insurance accounting entries

It is an asset in his personal accounts.

If you are maintaining company account than show as drawing in company account and under personal account show it as an investments.

MR. Mitesh N Kothari, THANKS FOR YOUR REPLY, IF I AM TAKING THIS AS DRAWINGS SO WHAT WOULD BE THE ENTRY FOR THE MATURITY AMOUNT I HAD PASS THE ENTRY DRAWING A/C DR. 15,000/- TO CASH 15,000/- [MATURITY AMOUNT WOULD BE TREATED AS INCOME OR WHAT, PLEASE TELL ME THE VOUCHER ENTRY FOR THE MATURITY AMOUNT]

At the moment you dont need to record maturity amount. You will need to maturity amount at the time of maturity when you received from Insurance company (after 5years)

In Personal Account you need to receive from Investment (Head)

In Company Account you need to receive from Capital Account

 

Regards

Deepak Sharma