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Insurance/registration entry on sale of vehicle

A/c entries 664 views 1 replies

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.

Replies (1)

Debit all expenses and Credit all receivers if case of Creditors/Debtors. If any cheque/cash is paid, credit Bank/Cash a/c 

 


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