PPT : Joint life policy Notes | Study Accountancy Class 12 - Commerce

 Page 1


Partnership Accounts  
Joint Life Policy (JLP) 
CPT Section A Fundamentals of Accountancy Chapter 8  Unit-4&5 
Prof. Deepak Jaggi 
Page 2


Partnership Accounts  
Joint Life Policy (JLP) 
CPT Section A Fundamentals of Accountancy Chapter 8  Unit-4&5 
Prof. Deepak Jaggi 
Learning Objectives 
 
(1) Understand the meaning of JLP 
(2) Understand the Implication of Excess Money 
Received on Death of a Partner from JLP 
(3) Understand the meaning of Surrender Value 
(4) To Lay a foundation of accounting treatment  
of various Methods 
Page 3


Partnership Accounts  
Joint Life Policy (JLP) 
CPT Section A Fundamentals of Accountancy Chapter 8  Unit-4&5 
Prof. Deepak Jaggi 
Learning Objectives 
 
(1) Understand the meaning of JLP 
(2) Understand the Implication of Excess Money 
Received on Death of a Partner from JLP 
(3) Understand the meaning of Surrender Value 
(4) To Lay a foundation of accounting treatment  
of various Methods 
Joint Life Policy (JLP) 
Joint Life Policy is a policy taken in the joint names of all 
the partners 
The premium of this policy is paid by the firm 
Contd…. 
Page 4


Partnership Accounts  
Joint Life Policy (JLP) 
CPT Section A Fundamentals of Accountancy Chapter 8  Unit-4&5 
Prof. Deepak Jaggi 
Learning Objectives 
 
(1) Understand the meaning of JLP 
(2) Understand the Implication of Excess Money 
Received on Death of a Partner from JLP 
(3) Understand the meaning of Surrender Value 
(4) To Lay a foundation of accounting treatment  
of various Methods 
Joint Life Policy (JLP) 
Joint Life Policy is a policy taken in the joint names of all 
the partners 
The premium of this policy is paid by the firm 
Contd…. 
Joint Life Policy (JLP) 
Whenever any of the partner dies, the policy comes to an  
end and amount is received by the firm 
Policy amount including the bonus, if any belongs to  the 
entire firm and not only to the deceased partner 
Page 5


Partnership Accounts  
Joint Life Policy (JLP) 
CPT Section A Fundamentals of Accountancy Chapter 8  Unit-4&5 
Prof. Deepak Jaggi 
Learning Objectives 
 
(1) Understand the meaning of JLP 
(2) Understand the Implication of Excess Money 
Received on Death of a Partner from JLP 
(3) Understand the meaning of Surrender Value 
(4) To Lay a foundation of accounting treatment  
of various Methods 
Joint Life Policy (JLP) 
Joint Life Policy is a policy taken in the joint names of all 
the partners 
The premium of this policy is paid by the firm 
Contd…. 
Joint Life Policy (JLP) 
Whenever any of the partner dies, the policy comes to an  
end and amount is received by the firm 
Policy amount including the bonus, if any belongs to  the 
entire firm and not only to the deceased partner 
Methods of Accounting 
Method 1 :- When Premium paid is treated as an expenses 
Method 2: When premium paid is treated as an asset 
Method 3: When premium paid is treated as an asset and 
JLP reserve created