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