Rectification

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SHAKIL (Querist)
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28 October 2010 An amount of Rs. 500 treated as paid in advance on account of insurance in the P.Y. was not brought forward.....
What will be the rectification of above adjustment?

In book it is given...
Insurance A/c......................Dr
To, Suspense A/c.

But in my views it would be .....
Insurance A/c......................Dr
To, Prepaid Isurance A/c

I am very confused regarding this...
any one can explain what will be correcr solution of this with reason nad explanation..

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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28 October 2010 your 2nd entry is correct.since paid agaisnt the Insurance, it will be adjusted against the pre paid only

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SHAKIL

SHAKIL (Querist)
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06 December 2010 But in CPT mat and in hanif mukherjee's book 1st entry is given......
This entry was asked by calcutta university in B.com(H) 1st year

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