Treatment of insurance of proprietor

This query is : Resolved 

07 January 2013 Dear,

My Boss has taken an Insurance policy for which he pays a Premium of Rs. 100,000.00 in FY.11-12.

the entry posted by the previous accountant was as follows:

Dr. Insurance Investment 1 Lac
Cr. Bank Acct 1 Lac.

Please advise if correct.
Also, the entry for this to be transfered to Prop. Capital acct will be ???

Profile Image

Guest

Profile Image

Guest (Expert)
07 January 2013 Prop. Capital A/c Dr.
To Bank A/c
(Being Insurance Premium paid)

07 January 2013 Oh so the entry posted is wrong and rather i should revise the same with

Prop. Capital Acct 1 Lac DR.
Bank Acct 1 Lac CR.

Which means that its directly going to his capital acct.




You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join CCI Pro
CAclubindia's WhatsApp Groups Link


Similar Resolved Queries


loading


Unanswered Queries