Suresh Chandra (Manager - Accounts) (206 Points)
08 August 2011Dear Sir,
My Company has taken Employees Group Insurance Policy. one employee claimed his post operation charges and the Insurance company issued a cheque for the above post operation charges in favour of Company name. (not in the name employee)
1) what is the accounting process and entries for the above transaction?
Thanks / Regards,
Suresh Chandra.
CA CS CIMA Prakash Somani
(Landmark Group)
(23502 Points)
Replied 08 August 2011
as the amt is in the name of company so company will pass
bank Dr
to insurance Cr
and then
insurance dr
to employee cr
nidhi agrawal
(chartered accountant)
(76 Points)
Replied 08 August 2011
Medical Expenses Dr.
To Employee
(on submission of bills by employee)
Bank Dr.
To insurance Claim
(on receiving the money from insurance company)
Employee Dr
To bank
(on payment to employee)
nidhi agrawal
(chartered accountant)
(76 Points)
Replied 08 August 2011
to close both medical exp account and insurance claim a/c you can pass another entry
Insurance claim A/c DR.
to Medical Exp a/c
evenif, you dont pass the above entry,both the account will go to profit and loss a/c and effect will remain the same
25 Hours GST Scrutiny of Return and Notice Handling(With Recording)
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