As an asset-survivorship policy, Financial Accounting

As an asset

The argument for this statement is that the survivorship policy is an investment because eventually the partnership will receive either the surrender value or the sum assured an thus the premium should not be expensed but carried as an asset.

Relevant entries

    DR.    Life policy  asset account
        CR.    Cash book

Posted Date: 12/11/2012 6:29:01 AM | Location : United States

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