shaikh sajeed (Associate) (151 Points)
28 March 2018
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(178293 Points)
Replied 28 March 2018
Usually life insurance policies are not accounted in BS, while premium paid is debited to capital account as personal expense.
Sometimes, people declare sum assured under policy as investment, by adding equal amout to capital.
shaikh sajeed
(Associate)
(151 Points)
Replied 28 March 2018
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(178293 Points)
Replied 28 March 2018
Not recommended. As the maturity or claim amount received is tax-exempt, so it is directly added to BS.......... and many times in the account of beneficiary, so usually the insurance policies are not declared in BS.
But is required for any purpose, sum assured amount is declared under investment.
CA Naveen Chand
(Chartered Accountant)
(12729 Points)
Replied 28 March 2018
PREMIUM PAID IS SHOWN AS EXPENSE DEBIT SIDE OF BS
AND THE SAME IS ELIGIBLE FOR DEDUCTION U/S 80 C
RAJA P M
("Do the Right Thing...!!!")
(128091 Points)
Replied 28 March 2018
CAclubindia
