30 December 2010
if as an LIC agent I paid my client LIP and afterwords my client reimbursed me premium amount in next year.
Can I show LIP paid for client as expenses and next year when i receive it from client can i show it as Income OR Should I Show LIP paid for client as Current Asset?
30 December 2010
As per generally accepted principles of accounting and transactions.. you can not treat an advance payment on behalf of others as your expenditure...the same should be shown as advances (i.e. current assets) recoverable only.
CAclubindia
