A and B sharing profits and losses in the ratio of 3 : 2 took out joint
Question:
A and B sharing profits and losses in the ratio of 3 : 2 took out joint life policy on January 1, 2014 for ₹20,000. The annual premium payable on the policy was ₹2,000. The surrender value is nil in the first year but thereafter it increases by ₹1,600 per annum. On December 31, 2017 A dies.
Show the Policy Account and Policy Reserve Account in the books of the firm from 2014 to 2017.
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Step by Step Answer:
To account for the joint life policy taken out by A and B from 2014 to 2017 including the death of A in December 2017 we need to create two ledger acc...View the full answer
Answered By
Deepak Sharma
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Related Book For 
Financial Accounting Volume II
ISBN: 9789387886230
4th Edition
Authors: Mohamed Hanif, Amitabha Mukherjee
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