Question

premium paid on the life policy of employees 7000.....journal entry for this​

Answer 1

Answer:

staff welfare expense A/c Dr. 7000

To Bank A/c. 7000

Answer 2

♡[Answer]♡

Journal entry for the life policy paid will be:

Drawings A/c Dr.7000

To cash/bankA/c Cr. 7000

(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 Any amount withdrawn from business for "personal use" is treated as drawing. Cash/bank account is credited because as per golden rules of accounts, for real accounts entries passed will be credit what goes out.)

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