What will be the accounting entries in the book of insurance company while receiving services from insurance agent?
MOHIT MALHOTRA (Owner at Mohit Accounting Services) (68 Points)
30 September 2014What will be the accounting entries in the book of insurance company while receiving services from insurance agent?
Kashish Gupta
(B.com (H) , ACA)
(368 Points)
Replied 01 October 2014
Agent is making sales for a consideration of commission:
Agent Commission A/c Dr.
To Bank A/c
To TDS Deducted A/c
Giving Policies to Insurance Agent for sale on bahalf of Insurance Company
Agent A/c Dr.
To Policies for sale A/c
At year end while cosing books :
Reduce debtors with amount standing in debtors account and from sale of insurance policies account ( Amount = Amount of policies not sold till end i.e 31/03)
When policies are sold :
Bank A/c Dr
To Agent A/c
Policies for Sale A/c Dr. [Being Revenue Recognised as per AS 9]
To Sales A/c
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