Hi Can any one here let me know about the accounting treatment required for subscribing a chit fund and receiving money from the auction and the treatment of loss?
Hi Can any one here let me know about the accounting treatment required for subscribing a chit fund and receiving money from the auction and the treatment of loss?
Kuri a/c Dr
To CAsh
(For the amount of payment we made)
Cash a/c Dr
Discount a/c Dr.
To Kuri
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
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