Financial and Management Accounting

1: If the premium is paid on the life policy of the proprietor of the business, it is
A.
Treated as the drawings and is shown by way of deduction from the capital account
B.

Taken to the Trading Account

C.

Taken to the Profit and Loss Account

D.
Taken to the Balance Sheet and is shown as an asset
 

Answer : A

Explanation :

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Option: A

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