Hello Everyone Good Morning.
An invoice was received from hdfc ergo for Mediclam insurance of employees for rs. 240000 and policy period is 1st February 2022 to 31st January 2023.
Pass the necessary accounting entries in financial year 2022-2023.
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Confusing journal entries
Replies (9)
Let me give you the concept
1. insurance account nominal
2. Cash /bank account credit
1. insurance account nominal
2. Cash /bank account credit
If you have received an invoice in the month of Feb 22
insurence expenses A/C DR 20000
Prepaid insurance A/C DR 220000
To HDFC Ergo CR 240000
then you monthly prepaid insurance amount transfer to insurance Expenses account
insurence expenses A/C DR 20000
Prepaid insurance A/C DR 220000
To HDFC Ergo CR 240000
then you monthly prepaid insurance amount transfer to insurance Expenses account
Yes, I agreed with Mr Kiran.
@ Mr Kausik,
pass the entries as per Mr Kiran.
@ Mr Kausik,
pass the entries as per Mr Kiran.
Well the insurance is capitalised and premiums are expensed. I have to update on insurance standard in Indas.
Mr Kiran kya aap mujhe bata skte hai ki kon kis head mein aayega tally me aur mujhe yeh bhi explain kr dijiye ki agar Feb mein yah entry hogi toh March and April mein kya entries hogi and so on
1 insurence expenses under head indirect expenses 2 Prepaid insurance under Head
current Assets
March 22 To Jan 23 you have to pass under Entry Monthly Basis
insurence expenses A/C DR 20000
To. Prepaid insurance A/C CR 20000
current Assets
March 22 To Jan 23 you have to pass under Entry Monthly Basis
insurence expenses A/C DR 20000
To. Prepaid insurance A/C CR 20000
Okay I got it @ Mr Kiran
All okay but it's an insurance premium paid for employees by employer , so employer side it is a liability which have to pay ,
YRL basis.
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