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Insurance Premium paid by the firm on the life Insurance policy of a partner is
  • a)
    Debited to Capital A/c of Partner
  • b)
    Credited to Capital A/c of Partner
  • c)
    Debited to Profit and loss A/c
  • d)
    Credit to Profit and Loss A/c
Correct answer is 'C'. Can you explain this answer?
Most Upvoted Answer
Insurance Premium paid by the firm on the life Insurance policy of a p...
Correct Answer :- c
Explanation : When the partners decide to treat the premium on Joint Life Policy as an expense, then they debit the Premium A/c to the Profit and Loss A/c every year to close it. In this situation, the full amount of policy received from the Insurance Company becomes a gain.
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Community Answer
Insurance Premium paid by the firm on the life Insurance policy of a p...
The correct answer will be A since in the question we have given life insurance policy not joint life policy.
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Insurance Premium paid by the firm on the life Insurance policy of a partner isa)Debited to Capital A/c of Partnerb)Credited to Capital A/c of Partnerc)Debited to Profit and loss A/cd)Credit to Profit and Loss A/cCorrect answer is 'C'. Can you explain this answer?
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Insurance Premium paid by the firm on the life Insurance policy of a partner isa)Debited to Capital A/c of Partnerb)Credited to Capital A/c of Partnerc)Debited to Profit and loss A/cd)Credit to Profit and Loss A/cCorrect answer is 'C'. Can you explain this answer? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Insurance Premium paid by the firm on the life Insurance policy of a partner isa)Debited to Capital A/c of Partnerb)Credited to Capital A/c of Partnerc)Debited to Profit and loss A/cd)Credit to Profit and Loss A/cCorrect answer is 'C'. Can you explain this answer? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Insurance Premium paid by the firm on the life Insurance policy of a partner isa)Debited to Capital A/c of Partnerb)Credited to Capital A/c of Partnerc)Debited to Profit and loss A/cd)Credit to Profit and Loss A/cCorrect answer is 'C'. Can you explain this answer?.
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