insurance matured entry

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

31 March 2010 I would like to know what would be the entry in tally;
insurance matured and the payment was done through cheque.The premium paid for the following insurance I was showing in Drawings. is the following entry right .
is it a receipt entry.
By bank
To proprietors capital a/c

CA Ashok Kumar Sahu

CA Ashok Kumar Sahu (Expert)
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31 March 2010 YES, you are correct

Querist : Anonymous

Querist : Anonymous (Querist)

31 March 2010 Thanks for replying

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shakuntala chhangani

shakuntala chhangani (Expert)
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01 April 2010 It is absolute right. But it is always better to show insurance premium payment as asset and increase the capital n yearly basis rather than one combined effect on capital.
Regards, CA Shakuntala Chhangani