HI,
LIc premium paid is shown as deduction from capital in balance sheet. When the policy amount is recieved what will be the effect in final a/c's. where this has to be shown ?
thanks in advance,
jafer (studies) (194 Points)
17 December 2012HI,
LIc premium paid is shown as deduction from capital in balance sheet. When the policy amount is recieved what will be the effect in final a/c's. where this has to be shown ?
thanks in advance,
Abhisek Rungta
(PRACTISING CHARTERED ACCOUNTANT)
(234 Points)
Replied 17 December 2012
The premium amount received can be added to the capital and the bank and cash balance can be increased accordingly.