IndigoLearn

Confused

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

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harsha t

harsha t

CA Foundation

180

28-Feb-20 12:21

88

Answers (8)

Insurance premium should be entered in p/l a/c Since trading a/c is all about factory related expenses The below attachments will help you understand to distinguish trading and p/l a/c

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Anirudh Gupta

Anirudh Gupta

CA Foundation

6K+

28-Feb-20 21:05

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)


Suraj Lakhotia

Suraj Lakhotia

Admin

29-Feb-20 06:18

I am I am confused for math


Asha Khandelwal

Asha Khandelwal

CMA Final

10

29-Feb-20 13:53

I think during purchase of good they will provide some insurance so that insurance will be charged to trading a/c


harsha t

harsha t

CA Foundation

180

29-Feb-20 18:35

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?


Suraj Lakhotia

Suraj Lakhotia

Admin

02-Mar-20 14:38

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


harsha t

harsha t

CA Foundation

180

02-Mar-20 16:17

Yes 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.


Suraj Lakhotia

Suraj Lakhotia

Admin

03-Mar-20 17:33