Entry

This query is : Resolved

kiran (Querist)
Follow

17 January 2011 In A chit business

what is entry for recoding every month

installments received from member.

How to adjust chit dividend against evry

month installment through entry

Thrissurkkaran Ishtan

Thrissurkkaran Ishtan (Expert)
Follow

17 January 2011 For instalments
Cash Debit
Commission Credit
ALL Individual Accounts Credit

Message likes : 1 times

Thrissurkkaran Ishtan

Thrissurkkaran Ishtan (Expert)
Follow

17 January 2011 For pay out
SINGLE Individual Account Debit (auction / lottery)
Cash Credit

Message likes : 1 times

Thrissurkkaran Ishtan

Thrissurkkaran Ishtan (Expert)
Follow

17 January 2011
For Dividend
SINGLE Individual Account Debit
ALL Individual Accounts Credit

Thrissurkkaran Ishtan

Thrissurkkaran Ishtan (Expert)
Follow

17 January 2011
Let us say 10 members Rs. 1000 each. So total Rs.10,000.
Commission Rs. 1000 (Income). So balance available is Rs.9000.
Auction happens for Rs. 7000. So Dividend is Rs. 2000. And the auctioned member gets 7000 (after commission)
Every member now has to pay 800.

Thrissurkkaran Ishtan

Thrissurkkaran Ishtan (Expert)
Follow

17 January 2011 8000 is collection
2000 is dividend
1000 is commission
Total 10,000

Thrissurkkaran Ishtan

Thrissurkkaran Ishtan (Expert)
Follow

17 January 2011 Entry for installment is
Cash debit 8000
Commission Credit 1000
ALL Individual accounts 700 each (total 7000). Pls note Pass book will show 800 (700 + 100 commission)

Thrissurkkaran Ishtan

Thrissurkkaran Ishtan (Expert)
Follow

17 January 2011 For auction pay out
SINGLE Account Debit 7000
Cash Credit 7000. Note that the cash account is now zero

Thrissurkkaran Ishtan

Thrissurkkaran Ishtan (Expert)
Follow

17 January 2011 For dividend
Debit SINGLE Individual Account Rs. 2000
Credit ALL Individual account RS. 200 each for 10 (Total 2000)

Dividend entry always knock out each other.

Some chit funds follow different type of entries. But end result is same for all.

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!

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