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Hi friends I am just confused about insurance premium and where should I enter insurance premium in trading a/c or p&l a/c because in 2nd screen shot custom and insurance was entered in expense side of trading a/c Can u any suggest me so that it would be helpful Because I am basically from b-tech background so I am not aware aware of the concept
Answers (8)
CA Suraj Lakhotia Admin
Sometimes, insurance expenses are incurred when raw materials are purchased - these are expenses incurred to bring materials to the factory location. These would be charged to trading account (like we do for freight inwards)
Sir,but trading a)c is all about factory expenses How can wear charge insurance claim
Anirudh Gupta
Sir,but trading a)c is all about factory expenses How can wear charge insurance claim
Don't you charge carriage inwards to trading account?
CA Suraj Lakhotia Admin
Don't you charge carriage inwards to trading account?
Yes sir we charge carriage inwards to trading a/c and carriage outwards to p&l a/c
Thread Starter
sai tYes sir we charge carriage inwards to trading a/c and carriage outwards to p&l a/c
Sometimes along with carriage inwards, transit insurance is paid on goods brought into the factory. So such insurance charges are charged to trading account.
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