treatment of joint life policy reserve

asked Aug 17, 2014 in Partnership-Dissolution of a Partnership Firm by deepz (143 points) 6,963 views

1 Answer

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Joint Life Policy being an asset is transferred to the debit side of Realisation A/c and the related Joint Life Policy Reserve is transferred to the credit side of Realisation A/c When the Insurance Company pays the Insured amount or Surrender Value whichever is application, that amount is credited to the Realisation Account.

Any Reserve against which there is no Asset is directly credited to all the partners in their profit sharing ratio. For example General Reserve is transferred to all the partners in their profit sharing ratio.

answered Aug 17, 2014 by jbsclasses (3,971 points)
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