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This query is : Resolved

lakshmiswetha (Querist)
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28 December 2010 i need journal entries for
paid insurance premium rs.5000 for a shop
distribution of free samples rs.10000
loan to mudit
repairs to buildings

CA Gunjan Kedia

CA Gunjan Kedia (Expert)
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29 December 2010 1. paid insurance premium5000 for a shop:

Insurance Premium A/c ... Dr.
To Bank

P & L A/c ... Dr.
To Insurance Premium

2. distribution of free samples10000:

Advertisement A/c ... Dr.
To Trading A/c

P & L A/c ... Dr.
To Advertisement

3. loan to mudit:

Loan to Mudit A/c ... Dr.
To Bank

4. repairs to buildings:

a) If repairs are minor:

Repairs to Building A/c ... Dr.
To Bank

P & L A/c ... Dr.
To Repairs to Building

b) If repairs are major:

Building A/c ... Dr.
To Bank

Hitender Gaur

Hitender Gaur (Expert)
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29 December 2010 if period of insurance crossing financial year then there is need to pass entry for Prepaid Insurance and i.e.

Prepaid Insurance A/c. Dr.
To Insurance Premium Account

( 5000/365 x days of Next Financial Year)

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