Treatment of insurance of proprietor
This query is : Resolved
07 January 2013
Dear,
My Boss has taken an Insurance policy for which he pays a Premium of Rs. 100,000.00 in FY.11-12.
the entry posted by the previous accountant was as follows:
Dr. Insurance Investment 1 Lac
Cr. Bank Acct 1 Lac.
Please advise if correct.
Also, the entry for this to be transfered to Prop. Capital acct will be ???
My Boss has taken an Insurance policy for which he pays a Premium of Rs. 100,000.00 in FY.11-12.
the entry posted by the previous accountant was as follows:
Dr. Insurance Investment 1 Lac
Cr. Bank Acct 1 Lac.
Please advise if correct.
Also, the entry for this to be transfered to Prop. Capital acct will be ???
Guest
Guest
(Expert)
07 January 2013
Prop. Capital A/c Dr.
To Bank A/c
(Being Insurance Premium paid)
To Bank A/c
(Being Insurance Premium paid)
07 January 2013
Oh so the entry posted is wrong and rather i should revise the same with
Prop. Capital Acct 1 Lac DR.
Bank Acct 1 Lac CR.
Which means that its directly going to his capital acct.
Prop. Capital Acct 1 Lac DR.
Bank Acct 1 Lac CR.
Which means that its directly going to his capital acct.
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