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LIC Premium pay 3654 |
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Answer» Answer: Explanation: Lic premium account...Dr.. 3654 To CASH account.... 3654 (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 Any amount withdrawn from business for "personal use" is treated as drawing.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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