Insurance premium paid on the life of proprietor himself is an example of _____________.

Revenue expenditure

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Capital expenditure

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Deferred revenue expenditure

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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.

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