What will be the accounting entries in the book of insurance company while receiving services from insurance agent?
1 Replies
Kashish Gupta
(B.com (H) , ACA)
(368 Points)
Replied 01 October 2014
Agent is making sales for a consideration of commission:
Agent Commission A/c Dr.
To Bank A/c
To TDS Deducted A/c
Giving Policies to Insurance Agent for sale on bahalf of Insurance Company
Agent A/c Dr.
To Policies for sale A/c
At year end while cosing books :
Reduce debtors with amount standing in debtors account and from sale of insurance policies account ( Amount = Amount of policies not sold till end i.e 31/03)
When policies are sold :
Bank A/c Dr
To Agent A/c
Policies for Sale A/c Dr. [Being Revenue Recognised as per AS 9]
To Sales A/c
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