I'd a doubt with accounting treatment of PF(employee portion), LIC premium paid, PPF/NPS contribution made by a salaried person.
Whether the 'premium amount/ employee portion of PF/contribution made to Funds' needs to be shown as expenses and then add it to asset? Or it needs to be credited to Capital account and then add it to the Asset?
Also, any interest accrued for the same needs to reported in my books immediately? If yes, then in P&L account or Capital account and then add it to respective asset? If no, then how to show the bulk maturity amount when received (what could be accounting treatment)?
I think account treatment will be different for PF portion, LIC but same for NPS & PPF?
Please take sometime and solve my query in detail with regards to all investments shown, I've been looking for this answer from long time.
Awaiting for someone to help asap. Thanks in advance.
CAclubindia
