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Mukesh Kumar made post

Where will be journal entry of deposit 2400 owner lic premium?

Answer
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VIKAS DELIWALA answered.
8 months ago


Insurance premium a/c ----- Dr
To cash/bank a/c


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Abigail Ghoshal answered.
8 months ago


If you follow the double-entry system of accounting, you have to post an entry in the journal and the corresponding ledger. The entry shall be:

Insurance expense a/c ……………………Dr.

2400

To Bank account

2400

(Being insurance expense paid)

P&L account……………………………………Dr.

2400

To insurance expense

2400

(Being expense transferred to P&L account)