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Life insurance accounting entries
i had paid rs. 15,000/- for the life insurance. there are 4 balance installment pending which would be be annually & the maturity amount would be 1,50,000/- after five year.
I would like to know that insurance is expense or assets. what would be accounting entry for the same
Replies (3)
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
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