Question

which type of account is fire insurance premium
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Answer 1

Answer:

All expenses/losses are recorded on the debit side and Income/gains are recorded on the credit side of Profit and Loss account.As drawings have effectively already been taxed by not including them as an expense in the Profit and Loss A/C they are not then taxed as a separate source of personal income. .

Answer 2

Fire insurance is property insurance covering damage and losses caused by fire. The purchase of fire insurance in addition to homeowner's or property insurance helps to cover the cost of replacement, repair, or reconstruction of property, above the limit set by the property insurance policy.

All expenses/losses are recorded on the debit side and Income/gains are recorded on the credit side of Profit and Loss account.