29 August 2020
I am a salaried person ( No business income) and preparing my accounts on tally from past few years i know its not compulsory but even though i do so
so i am paying lic premium but i want to know that whether it should be shown under investment or under capital
what is correct accounting treatment i want fundamentally correct answer sir and the logic behind it
29 August 2020
Fundamentally both provisions/treatments are one and the same and allowed, investment u have to carry on years to years, that's why people generally show LIC premium paid in capital and don't carry the balances..!!
31 August 2020
You can show it as an Expenditure and make accrual entry in the books of accounts for LIC Bonus and other receivable as per terms and conditions of the policy if you know the calculations.
CAclubindia
