How to Record Life Insurance Maturity amount in Tally.ERP 9?
When a Life Insurance Policy has been matured, the Policy Maturity amount will be either directly deposited into your Bank Account which is provided to the Insurance Company or a Cheque will be issued to the Insurance Holder. And we can record the Life Insurance Maturity receipt transaction in Tally.ERP 9 Accounting Software using the Receipt Voucher Type.
After the verification process is completed the Insurance Company will release the Insurance Maturity Amount to the Insurance Policy Holder. When a Life Insurance Policy is completed the Maturity amount will be credited to the Insurance Holder Bank Account and it is very race case that he could claim it in Cash.
In Tally.ERP 9 Accounting Software the accounting treatment of Life Insurance Maturity amount will be based on the transactions recorded for the Life Insurance Premiums payments recorded in your Company. If the Insurance premium amount is deduced from Capital Account we can record the Maturity amount by crediting the Capital Account.
If we have shown the Life Insurance Premiums under investments instead of deducting from Capital account while paying off the Premiums we have do the following Accounting Voucher Entry in Tally.ERP 9. In order to record the receipt of the Insurance Maturity amount
- Open the Receipt Voucher Type from Gateway of Tally.
- Debit the Bank Account Ledger from the list.
- Here your Insurance Premium account under Investments should be closed so Credit the Insurance Premium Ledger and enter the closing balance of the ledger as on date.
- The remaining amount is your Income from Investment so credit the Capital Account with the difference amount.
And accept the screen. When you see the Balance Sheet you can find out that the Insurance Premium Account under Investments Group will be closed automatically and the Bank and Capital Accounts will be increased. And this is how to record the Life Insurance Maturity amount receipt entry in Tally.ERP 9 Accounting Software.
