Insurance premium paid on the life of proprietor himself is an example of _____________.
A
Revenue expenditure
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B
Capital expenditure
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C
Deferred revenue expenditure
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D
None of the above
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Solution
The correct option is B None of the above Insurance premium paid on the life of proprietor is a personal expense and to be debited to drawings account. This has to be deducted from capital account. It is not a revenue, capital or deferred revenue expenditure.