Items related to A treatis on life insurance accounts; forming pt.2...
Synopsis
This historic book may have numerous typos and missing text. Purchasers can download a free scanned copy of the original book (without typos) from the publisher. Not indexed. Not illustrated. 1874 Excerpt: ...Union, London &r Southwark, Scot. Equitable, Scot. Imperial, Scot. Widows', Temperance 6-General. The Gresham gives the item "Commissions in Suspense"; but this appears to be some special amount, as it is far too small to represent the commission on the Outstanding Premiums and Agents' Balances. 125. If, however, the amount of outstanding premiums is large, this item may become important; and it would be better that in all cases the amount of the commission to agents in respect of all outstanding premiums, and all credit premiums on which commission has not been paid, should be charged in the account. This might be done with a close approach to accuracy; but it would be more difficult to arrive at the unpaid arrears of commission, and as this will generally be of comparatively very small importance, it may safely be neglected. 126. Unpaid Income Tax. Similar remarks apply to this item. Credit is taken for the full amount of the interest due and unpaid (and in some cases for the accrued interest); but as the income tax will be deducted, the actual or estimated amount of it should be charged as a liability. The only accounts in which any reference to this item appears are those of the General, the London Assurance, which gives "Outstanding Income Tax," and the Law Union, which gives "Income Tax on Annuities, due to Government." CHAPTER V, On The Form Of The Balance Sheet Prescribed By The Second Schedule Of The Act.--Assets. 127. We come now to the other side of the balance sheet, which includes the assets. It is quite clear that the persons who settled the present form of the schedule, had not in their contemplation at the time the various kinds of securities which are most favoured by insurance companies; and the result is,...
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