Question

What will be the journal entry of paid Life insurance premium(self) Rs 5000

Answer 1

DRAWINGS a/c. Dr.
To cash a/c

(Insurance premiums are our drawings)

Plz mark it as brainlist.

Answer 2

Drawings a/c Dr.5000
To cash a/c Cr. 5000

(any expenses that we do for ourselves are drawings because of the concept of business entity which says that the business and the businessman are completely distinct from each other.)

#thanks