chit fund investment entry

This query is : Resolved

ravi (Querist)
Follow

03 August 2008
Tell me the accounting entry required for invetsment in a chit fund company like SRi ram chits fund ,from the company point of view?

company name = X ltd.
Nature of deposit/advance = in cash/bank

CA RAMESH KUMAR AHUJA

CA RAMESH KUMAR AHUJA (Expert)
Follow

04 August 2008 Chit Fund with Sri Ram Chits Fund Dr.
To Bank/Cash
To Dividend on Chit(In case payment is
net of Dividend)

In case no dividend is available then the entry for dividend may be ignored.

Message likes : 2 times

ravi

ravi (Querist)
Follow

04 August 2008 Thanks for the information.
Apart from this investment that company may receive some advance money from that sri ram chits . for that advance x ltd may need to pay EMI's on the basis of that advance/loan

Waiting for the solution

Thanks,
Ravi

CA RAMESH KUMAR AHUJA

CA RAMESH KUMAR AHUJA (Expert)
Follow

04 August 2008 Amount received against Chit auctioned in ur favour may be credited to the chit fund company. Entries in this regard will be as per under;

Entry for auction money after the discount and Foreman Commission:

Bank Dr
Loss on chit fund
To Sri Ram Chit Fund

Subsequent Monthly payment:

Sri Ram Chit Fund
To Bank
To Dividend

ravi

ravi (Querist)
Follow

04 August 2008 Thanks for the information.

can you explain whats this dividend. is it like apportion of loss on chit fund among the remaining period of time?

Thanks,

Ravi

CA RAMESH KUMAR AHUJA

CA RAMESH KUMAR AHUJA (Expert)
Follow

05 August 2008 It is the profit which will accrue to you on month to month basis on the auction of a chit.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join the CA Students WhatsApp Community for ICAI Updates, Trending Courses & Notes!

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

Mohit Kumar

CA Narender Yarragorla

Aayushi Chauhan

MUNISH KUMAR

CA Aakarsh Jain

Subscribe Now

chit fund investment entry

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Senior Executive

Manager- Finance and Compliance

GST CONSULTANT

GST CONSULTANCY

Accountant

CA Final

Article Assistant

Associate CA