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Stock insurance


Naveen Kumar   03 June 2020

Naveen Kumar

 11 likes  277 points

| My Other Post

Dear Sir,

please advise below entry is correct

Dr. Insurance co. (loan & advance)
Cr. bank account

Dr. insurance expenses (indirect exp)
Cr. insurance co.

avater

yasaswi gomes   03 June 2020

yasaswi gomes

 61 likes  986 points

View Profile | My Other Post

Perfect. But depends upon what software and accounts you use. Eg when you enter the transactions in a related ledger, the software will identify and transfer the amounts properly. Hence, journal entries will not be adequate for some transactions. 

Purchases a/c

To Creditors a/c

when you clear off the payables

creditors a/c

To Bank a/c

then how will you pass on the fixed asset recognition entry?

So people will first account for the asset and cash like

Asset a/c

To Payables a/c

and when amount is cleared

Payables

To Bank

then how will you recognise purchases?

So ledger account balances are taken into account or maybe use closing entries.  

 

 

 


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