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Joint life policy

Accountancy

When partner died after claiming a insurance he is still liable then what there do and what will effect in balance sheet

Jashwanth S

CMA Inter

★ 2K+

26-Jun-20 10:45

332

Answers (1)

When a partner dies, the amount received from the insurance company will be credited to the Joint Life Policy Account, the balance on this account is then transferred to the capital accounts of partners (including the deceased partner) in the profit- sharing ratio.