[amit]

Sorry sir this is not the question that came in exam that question has asked by our tution provider at the time of mock exam .
Question
The FMDB bank has provided loan to staff of$ 370,000.00 for making home through the way of life insurance policy contract with employee .
Employee is liable to pay premium on insurance policy but not liable for instrest payment and principal amount payment to FMDB.
The beneficiary is the FMDB by making seperate contact with employee any benefit received from the insurance policy is right of FMDB ie. Employee have no right to access the payment by insurance after 20year .
The premium paid to this year by employee is $18500.
Management has accounted and told to auditor that
Dr staff loan 370,000.00
Cr bank 370,000.00
This will be kept as it is for 20years .
They will credit the staff loan account once the FMDB realise d the payment from insurance and excess amount of 370,000.00 will recognised as income after 20yrs time .

Is this right accounting treatment of FMDB management and what issue you will consider with audit procedure.
If necessary suggest the appropriate accounting treatment . 15marks

[amit]

opentuition is fake dnt belive on it.

i hate hate his website n dnt need this in any future
make us fool

by gyessing
nonsens topic

go to hell
block my account

[amit]

1800 n 300 i thnk so

[amit]

easy question but no time to solve i finishd only 3 n haf question
dnt belive on open tution
j

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