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Arum, Balu share profit in the ratio of 3:2. They have
taken a joint life policy for `.60,000 on 1st May 2005.
The annual premium was `.2,600. The surrender
value was as follows: 2005-Nil; 2006-`.1,400;
2007-`.1,900; 2008-`.4,450.
Balu died on 15th Sep 2008. Claims were received on
31-12-2008. The accounts are closed on end of the
every year.
Prepare joint life policy account (under surrender
value treated as an asset). Joint life policy A/c.
?
Most Upvoted Answer
Arum, Balu share profit in the ratio of 3:2. They have
taken a joint ...
Joint Life Policy Account
The joint life policy account is a nominal account that is created to record the transactions related to a joint life policy taken by two or more persons. In this account, the premiums paid, as well as the surrender value received, are recorded.
Calculation of Premium
The premium paid for the joint life policy is `.2,600 per annum. As the policy was taken on 1st May 2005, the premium paid for the year 2005 is Nil. Therefore, the premium paid for the years 2006, 2007, and 2008 are as follows:
- 2006: `.2,600
- 2007: `.2,600
- 2008: `.2,600
Total premium paid for 2006, 2007, and 2008 is `.7,800.
Calculation of Surrender Value
The surrender value of the policy is treated as an asset and is recorded in the joint life policy account. The surrender values for the years 2005, 2006, 2007, and 2008 are as follows:
- 2005: Nil
- 2006: `.1,400
- 2007: `.1,900
- 2008: `.4,450
The total surrender value of the policy as on 31st December 2008 is `.7,750.
Calculation of Profit Sharing Ratio
Arum and Balu share the profit in the ratio of 3:2. Therefore, the share of Arum and Balu in the profit is as follows:
- Arum's share = (3/5) x Total profit
- Balu's share = (2/5) x Total profit
Calculation of Claim Amount
Balu died on 15th September 2008. Therefore, his share of the surrender value is calculated as follows:
- Balu's share of surrender value = (2/5) x `.4,450 = `.1,780
The claim amount for Balu's share is `.1,780.
Closing of Joint Life Policy Account
The joint life policy account is closed by transferring the balance to the profit and loss account. The balance in the joint life policy account as on 31st December 2008 is as follows:
- Total premium paid = `.7,800
- Total surrender value = `.7,750
- Balu's share of surrender value = `.1,780
Therefore, the balance in the joint life policy account is `.5,230 (`.7,800 - `.7,750 + `.1,780). This balance is transferred to the profit and loss account and shared between Arum and Balu in their profit sharing ratio of 3:2.
The joint life policy account is a nominal account that is created to record the transactions related to a joint life policy taken by two or more persons. In this account, the premiums paid, as well as the surrender value received, are recorded.
Calculation of Premium
The premium paid for the joint life policy is `.2,600 per annum. As the policy was taken on 1st May 2005, the premium paid for the year 2005 is Nil. Therefore, the premium paid for the years 2006, 2007, and 2008 are as follows:
- 2006: `.2,600
- 2007: `.2,600
- 2008: `.2,600
Total premium paid for 2006, 2007, and 2008 is `.7,800.
Calculation of Surrender Value
The surrender value of the policy is treated as an asset and is recorded in the joint life policy account. The surrender values for the years 2005, 2006, 2007, and 2008 are as follows:
- 2005: Nil
- 2006: `.1,400
- 2007: `.1,900
- 2008: `.4,450
The total surrender value of the policy as on 31st December 2008 is `.7,750.
Calculation of Profit Sharing Ratio
Arum and Balu share the profit in the ratio of 3:2. Therefore, the share of Arum and Balu in the profit is as follows:
- Arum's share = (3/5) x Total profit
- Balu's share = (2/5) x Total profit
Calculation of Claim Amount
Balu died on 15th September 2008. Therefore, his share of the surrender value is calculated as follows:
- Balu's share of surrender value = (2/5) x `.4,450 = `.1,780
The claim amount for Balu's share is `.1,780.
Closing of Joint Life Policy Account
The joint life policy account is closed by transferring the balance to the profit and loss account. The balance in the joint life policy account as on 31st December 2008 is as follows:
- Total premium paid = `.7,800
- Total surrender value = `.7,750
- Balu's share of surrender value = `.1,780
Therefore, the balance in the joint life policy account is `.5,230 (`.7,800 - `.7,750 + `.1,780). This balance is transferred to the profit and loss account and shared between Arum and Balu in their profit sharing ratio of 3:2.
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Arum, Balu share profit in the ratio of 3:2. They have
taken a joint life policy for `.60,000 on 1st May 2005.
The annual premium was `.2,600. The surrender
value was as follows: 2005-Nil; 2006-`.1,400;
2007-`.1,900; 2008-`.4,450.
Balu died on 15th Sep 2008. Claims were received on
31-12-2008. The accounts are closed on end of the
every year.
Prepare joint life policy account (under surrender
value treated as an asset). Joint life policy A/c. Related: B.Com | 1st Year | Accounts Overview |?
Question Description
Arum, Balu share profit in the ratio of 3:2. They have taken a joint life policy for `.60,000 on 1st May 2005. The annual premium was `.2,600. The surrender value was as follows: 2005-Nil; 2006-`.1,400; 2007-`.1,900; 2008-`.4,450. Balu died on 15th Sep 2008. Claims were received on 31-12-2008. The accounts are closed on end of the every year. Prepare joint life policy account (under surrender value treated as an asset). Joint life policy A/c. Related: B.Com | 1st Year | Accounts Overview |? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about Arum, Balu share profit in the ratio of 3:2. They have taken a joint life policy for `.60,000 on 1st May 2005. The annual premium was `.2,600. The surrender value was as follows: 2005-Nil; 2006-`.1,400; 2007-`.1,900; 2008-`.4,450. Balu died on 15th Sep 2008. Claims were received on 31-12-2008. The accounts are closed on end of the every year. Prepare joint life policy account (under surrender value treated as an asset). Joint life policy A/c. Related: B.Com | 1st Year | Accounts Overview |? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Arum, Balu share profit in the ratio of 3:2. They have taken a joint life policy for `.60,000 on 1st May 2005. The annual premium was `.2,600. The surrender value was as follows: 2005-Nil; 2006-`.1,400; 2007-`.1,900; 2008-`.4,450. Balu died on 15th Sep 2008. Claims were received on 31-12-2008. The accounts are closed on end of the every year. Prepare joint life policy account (under surrender value treated as an asset). Joint life policy A/c. Related: B.Com | 1st Year | Accounts Overview |?.
Arum, Balu share profit in the ratio of 3:2. They have taken a joint life policy for `.60,000 on 1st May 2005. The annual premium was `.2,600. The surrender value was as follows: 2005-Nil; 2006-`.1,400; 2007-`.1,900; 2008-`.4,450. Balu died on 15th Sep 2008. Claims were received on 31-12-2008. The accounts are closed on end of the every year. Prepare joint life policy account (under surrender value treated as an asset). Joint life policy A/c. Related: B.Com | 1st Year | Accounts Overview |? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about Arum, Balu share profit in the ratio of 3:2. They have taken a joint life policy for `.60,000 on 1st May 2005. The annual premium was `.2,600. The surrender value was as follows: 2005-Nil; 2006-`.1,400; 2007-`.1,900; 2008-`.4,450. Balu died on 15th Sep 2008. Claims were received on 31-12-2008. The accounts are closed on end of the every year. Prepare joint life policy account (under surrender value treated as an asset). Joint life policy A/c. Related: B.Com | 1st Year | Accounts Overview |? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Arum, Balu share profit in the ratio of 3:2. They have taken a joint life policy for `.60,000 on 1st May 2005. The annual premium was `.2,600. The surrender value was as follows: 2005-Nil; 2006-`.1,400; 2007-`.1,900; 2008-`.4,450. Balu died on 15th Sep 2008. Claims were received on 31-12-2008. The accounts are closed on end of the every year. Prepare joint life policy account (under surrender value treated as an asset). Joint life policy A/c. Related: B.Com | 1st Year | Accounts Overview |?.
Solutions for Arum, Balu share profit in the ratio of 3:2. They have
taken a joint life policy for `.60,000 on 1st May 2005.
The annual premium was `.2,600. The surrender
value was as follows: 2005-Nil; 2006-`.1,400;
2007-`.1,900; 2008-`.4,450.
Balu died on 15th Sep 2008. Claims were received on
31-12-2008. The accounts are closed on end of the
every year.
Prepare joint life policy account (under surrender
value treated as an asset). Joint life policy A/c. Related: B.Com | 1st Year | Accounts Overview |? in English & in Hindi are available as part of our courses for B Com.
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Here you can find the meaning of Arum, Balu share profit in the ratio of 3:2. They have
taken a joint life policy for `.60,000 on 1st May 2005.
The annual premium was `.2,600. The surrender
value was as follows: 2005-Nil; 2006-`.1,400;
2007-`.1,900; 2008-`.4,450.
Balu died on 15th Sep 2008. Claims were received on
31-12-2008. The accounts are closed on end of the
every year.
Prepare joint life policy account (under surrender
value treated as an asset). Joint life policy A/c. Related: B.Com | 1st Year | Accounts Overview |? defined & explained in the simplest way possible. Besides giving the explanation of
Arum, Balu share profit in the ratio of 3:2. They have
taken a joint life policy for `.60,000 on 1st May 2005.
The annual premium was `.2,600. The surrender
value was as follows: 2005-Nil; 2006-`.1,400;
2007-`.1,900; 2008-`.4,450.
Balu died on 15th Sep 2008. Claims were received on
31-12-2008. The accounts are closed on end of the
every year.
Prepare joint life policy account (under surrender
value treated as an asset). Joint life policy A/c. Related: B.Com | 1st Year | Accounts Overview |?, a detailed solution for Arum, Balu share profit in the ratio of 3:2. They have
taken a joint life policy for `.60,000 on 1st May 2005.
The annual premium was `.2,600. The surrender
value was as follows: 2005-Nil; 2006-`.1,400;
2007-`.1,900; 2008-`.4,450.
Balu died on 15th Sep 2008. Claims were received on
31-12-2008. The accounts are closed on end of the
every year.
Prepare joint life policy account (under surrender
value treated as an asset). Joint life policy A/c. Related: B.Com | 1st Year | Accounts Overview |? has been provided alongside types of Arum, Balu share profit in the ratio of 3:2. They have
taken a joint life policy for `.60,000 on 1st May 2005.
The annual premium was `.2,600. The surrender
value was as follows: 2005-Nil; 2006-`.1,400;
2007-`.1,900; 2008-`.4,450.
Balu died on 15th Sep 2008. Claims were received on
31-12-2008. The accounts are closed on end of the
every year.
Prepare joint life policy account (under surrender
value treated as an asset). Joint life policy A/c. Related: B.Com | 1st Year | Accounts Overview |? theory, EduRev gives you an
ample number of questions to practice Arum, Balu share profit in the ratio of 3:2. They have
taken a joint life policy for `.60,000 on 1st May 2005.
The annual premium was `.2,600. The surrender
value was as follows: 2005-Nil; 2006-`.1,400;
2007-`.1,900; 2008-`.4,450.
Balu died on 15th Sep 2008. Claims were received on
31-12-2008. The accounts are closed on end of the
every year.
Prepare joint life policy account (under surrender
value treated as an asset). Joint life policy A/c. Related: B.Com | 1st Year | Accounts Overview |? tests, examples and also practice B Com tests.
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