Accounting entry

A/c entries 250 views 2 replies

student

29 Points Joined August 2017

New Vehicle Purchased and Insurance Premium paid for 5 yr. So, whats the accounting treatment of insurance paid for 5 yr.

Replies (2)

Manager @ CA Parmeswaran & Co.

168 Points Joined June 2012

Insurance for the year Dr (in p&l A/c)
Deferred Insurance Expenses A/c Dr (in balance sheet)
To, Bank Account A/c

"Do the Right Thing...!!!"

128147 Points Joined January 2015

Add the Insurance amount to Vehicle head if Purchased a New Vehicle...

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