Accountancy, asked by Jrajesh7849, 5 months ago

Paid fire insurance premium of office and life insurance premium of the owner

Answers

Answered by studiousgirl42
8

Answer:

Being life insurance paid from cash/bank account, drawing account is debited because the insurance premium is paid for a person who is not related to business transaction. Any amount withdrawn from business for "personal use" is treated as drawing.

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