Chit Fund Accounting

Accounting of Chits

Am sorry. the attachment is accounting of a chiity business.

While you are subcribing a chitty, th entry will be:

Kuri a/c Dr

        To CAsh 

(For the amount of payment we made)

On pricing/auction  you must account in accrue basis:

Cash a/c   Dr

Discount a/c Dr.

       To Kuri

After that, all the instalment you pay must account in accrue basis:

Kuri A/c    Dr.

     To Cash

     To discount.

The Discount on being prized/auctioned can be written off in the year of being auction/ prized. Or can be treated as a miscellaneous Asset to be w/off and divided by no. of future installments. and w/off on the basis of installments made.

hi

i want to know if from total salary company is deucting excess use of mobile bill fom salary and leave deduction from salary in case of excess leave taken by employee, how the journal entry need to be passed.

You can find an excel templete for simple maintenance of boooks of accounts in the link 

https://rajeevca.wordpress.com/2016/02/04/chit-fund-accounting/

sir please let me know "why in accounting we are not showing foreman comission in subscriber's account

and what are the accounting effects on chit fund companies

Foreman Commssion is the revenue for the chit company. It will not be related to any particular subscriber. Of course we are deducting it from the amount to be paid to the prized subscriber. Correct me if I am wrong.

We are accounting foremans commision in the subscribers accounts also. It is included in the discount a/c.

On pricing or auctioning, we are debiting the discount account which includes fixed discount, auction discount and foremans commision.

https://www.taxflora.com/blog/meaning-and-accounting-treatment-for-chit-fund

refer the above link for detailed analysis