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Query related to Joint Life Policy (partnership firm, dissolution)

Accountancy

How to treat â?¢ JLP Reserve (which appears on Liability side) â?¢ JLP (asset side) â?¢ JLP "surrendered" given in additional info Through Realisation and/or Partner's Capital Accounts? See attached for Q.

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Kumarjit Dey

Kumarjit Dey

CA Inter

4K+

04-Nov-20 15:19

430

Answers (1)

Two approaches. 1. Transfer both reserve and policy to realisation and give credit to the amoutn collected/received from the policy. 2. Transfer reserve to partners capital account directly. Transfer JLP to realisation and give credit for amount received.


CA Suraj Lakhotia

CA Suraj Lakhotia

Admin

04-Nov-20 17:11

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