Accounting entry

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