Insurance/registration entry on sale of vehicle

Pranjal (Student CA IPC / IPCC) (531 Points)

15 December 2014  

On sale of a vehicle registration and insurance (if customer opts) is collected by the dealer.Till it is paid to the Insurance company and the DTO is a liabilty for the dealer and should be shown under current liability. Kindly suggest how the entry for the registration and insurance can be passed while passing the sales entry.