Accounting entry

This query is : Resolved

sanjay (Querist)
Follow

13 July 2012 Hello Everyone
I am Sanjay. I want to clarify one point regarding entry in Tally.
My wife has paid a cheque to LIC on my behalf from her account. Now in the books of accounts where it will appear. I have made the entry in drawings of her account.
Bank A/c Dr
To Drawings
(in her books)
LIC a/c Dr
Drawings
(in my books of accounts)
My clients are professionals.
Am I right or I have to show loan to & from each other.
Kindly advise.
Regards
Sanjay

Ravindra Srinivasa

Ravindra Srinivasa (Expert)
Follow

14 July 2012 Hi,

When payment is made to LIC from your wife on your behalf, then in your books of account the entry shall be as under:

Debit - Life Insurance Premium paid A/c

Credit - Your wife A/c

And in your wife's books of account the entry shall be as under:

Debit - Sanjay A/c

Credit - Bank A/c