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Sir, if single one tim lic insurance is paid whether it can be shown as investment in balance sheet?

Ashim kr Ray (social service) (1695 Points)

16 May 2017

Sir, i want to if one time investment is made in Lic i.e single premium, can it shown as investment in Balance sheet every year?

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8 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (178226 Points)
Replied 16 May 2017

Yes

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CA Altamush Zafar (GST Consultant) (15971 Points)
Replied 16 May 2017

If its a balance sheet of company then lic policy cannot be shown as investment.
Even as per Accounting Standards its not allowed.

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mayur. choudhary (akola) (49 Points)
Replied 16 May 2017

ca altamush sir u want to say the balance of a insurance company not that person n who pays if think so...

mayur. choudhary (akola) (49 Points)
Replied 16 May 2017

sorry its balance sheet

CA Altamush Zafar (GST Consultant) (15971 Points)
Replied 16 May 2017

LIC is an insurance policy taken on life of an individual. In case of company the individual and company is different and therefore it cannot be shown as investment of company. Moreover investment is asset held for capital appreciation (long term) the benefit does not accrue to business but to the individual who takes it so it cannot feature in the balance sheet of business

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CA Altamush Zafar (GST Consultant) (15971 Points)
Replied 16 May 2017

Its shown as drawings or advances or expenses as the case may be