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Confusing journal entries

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96 Points Posted on 25 June 2023
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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On 25 June 2023 at 07:51 Report
Replies (9)
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Profession Business
28207 Points Posted on 25 June 2023
Let me give you the concept
1. insurance account nominal
2. Cash /bank account credit
1 Reply
On 25 June 2023 at 08:03
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accountant
461 Points Posted on 25 June 2023
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
2 Reply
On 25 June 2023 at 08:07
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"Do the Right Thing...!!!"
128152 Points Posted on 25 June 2023
Yes, I agreed with Mr Kiran.

@ Mr Kausik,

pass the entries as per Mr Kiran.
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On 25 June 2023 at 08:33
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GST Practitioner & Accounts
15093 Points Posted on 25 June 2023
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On 25 June 2023 at 08:50
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Finance
4584 Points Posted on 25 June 2023

Well the insurance is capitalised and premiums are expensed. I have to update on insurance standard in Indas. 

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On 25 June 2023 at 09:23
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96 Points Posted on 25 June 2023
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
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On 25 June 2023 at 09:37
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accountant
461 Points Posted on 25 June 2023
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
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On 25 June 2023 at 10:15
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96 Points Posted on 25 June 2023
Okay I got it @ Mr Kiran
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On 25 June 2023 at 12:57
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12 Points Posted on 30 June 2023

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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On 30 June 2023 at 01:49


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