05 November 2009
sir in finalling account of individual LIC Premium were i show my senior told me to show it as indirect expenses on p&L a/c but he has no buisness at all plz help i Know it is an personal expenses so,i want it to show on drawing
05 November 2009
Preparation of Final accounts of individual without having any business or profession is nothing but showing receipts and payments and a statement of asstes and liabilities. So any expenses can be shown as an expenses in receipts/payments or income/expenditure account as all are personal /family expenses as question of Profit or loss does not arise if the Individual has no business/profession/venture at all.
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