The balance of joint life policy account of partners represents ____________________.

Total premium paid up to the date or balance

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Annual instalment of premium payable each year

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Surrender value of the policy

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Amount receivable on the maturity of the policy

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

Open in App

Solution

The correct option is D Amount receivable on the maturity of the policy
Joint Life Policy (JLP) is a policy which is decided by the partners of the firm on the joint lives of other partners. The purpose of the joint life policy is to reduce the financial burden on the firm at the time of payment of a large sum to the legal representative of the deceased partner. The insurer receives the payout when after the death of his insure partner.

Suggest Corrections

Similar questions

Q. Assertion :Surrender value of a life policy is generally more than its paid-up value. Reason: Paid-up value is payable to the insured only after maturity of the policy.

Q. 'Paid-up value' is payable on a life insurance policy _________________.

Q. A, B & C takes a joint life policy, after

5

years B retires from the firm. Old profit sharing ratio is

2 : 2 : 1

. After retirement A and C decides to share profits equally. They had taken a joint life policy of

R s .2, 50, 000

with the surrender value

R s .50, 000

. What will be the treatment in the partner's capital account on receiving the JLP amount if joint life policy premium is fully charged to revenue as and when paid?

Ram and his wife have taken a life policy. The premium is paid jointly or by one of them in installments or in total. The promised amount is paid upon the death of one person to the other survivor.

Q. ABC are three partners in a partnership firm.They took a joint life policy of Rs.24,000 at an annual premium of Rs.1500 p.a. C dies on 15th April . On the date of death of B Joint life policy appeared in the books of firm at Rs. 3000. The policy amount of Rs.24,000 was received at the time of C. What amount will be transferred to the partners capital account for treatments of JLP?

Join BYJU'S Learning Program