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

Should it not be

Drawings A/c Dr. 5000

To Cash A/c 5000

(Being Life Insurance Premium paid)

Because according to me Life Insurance Premium is not related to business entity

  • 30
View Full Answer

Insurance Premium A/C Dr. 5000

To Cash/Bank A/C 5000

(Being the insurance paid)

  • -10

@rajan jain sorry, for the wrong ans. But thanks for correcting the mistake..

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