Director's cash input

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vijay (Querist)
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22 October 2013 Sir,

my query is like this.

1) a director/promoter of a private limited company inputs cash into the company's bank account.
2)then a cheque is issued from the company bank account to a insurance company i.e. icici prudential.
3)icici prudential issues a health insurance policy in the director's/promoter's name.

1)to which account head should the director's cash input go to.
2)the bank account is credited, which account is debited

please resolve my query.

regards
vijay

Arun Jain

Arun Jain (Expert)
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22 October 2013 First entry to putting cash in company bank account would be

Cash A/c Dr.
Loan from Director A/c
(Being cash receive from director towards loan)

Bank A/c Dr.
Cash
(Being cash deposited to bank)

Director Remuneration A/c.
To Bank
(Being cheuqe issued to ICICI Prudential for Personal health insurance of Director)

Loan from Director A/c.
To Bank
(Being cheuqe issued to ICICI Prudential for Personal health insurance of Director)

Arun Jain

Arun Jain (Expert)
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22 October 2013 you can either debit Director Remuneration A/c or Loan from Director A/c

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