Treatment of insurance of proprietor

This query is : Resolved

Aashish Soni (Querist)
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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 ???

Guest

Guest (Expert)

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

Aashish Soni

Aashish Soni (Querist)
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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.

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