Apprentice Premium is the amount charged from the person whom training is imparted by the business. So it is an income and credited to P & L Account.
What is the treatment of apprentice premium?
Apprenticeship premium received is an indirect income of the business to train someone. Indirect income is the income received from other sources apart from the main purpose of the business and is thus credited to the profit and loss account.
Where is life insurance premium in final accounts?
Answer: Life insurance premium is treated as drawings of the proprietor and is added up in drawings and deducted from capital in the balance sheet.
How are taxes treated in final accounts?
As per Sec. 193 and 194 of the Income-tax Act, 1961, income-tax is deducted while paying salary, interest, dividend etc. That is why, if any balance is left, the same appears as a liability of the company and is shown as a credit balance.
Which type of account is loan?
Loan account is a representative personal account, as it represents the person from whom the loan is obtained or to whom the loan is given. Hence, it is classified as a personal account.
What is the journal entry of life insurance premium paid?
To Cash/bank A/c Cr.5000 (Being life insurance paid from cash/bank account, drawing account is debited because the insurance premium is paid for a person who is not related to business transaction. Any amount withdrawn from business for “personal use” is treated as drawing.
Where does tax money go in final account?
Therefore, any income tax paid before or end of fiscal year is treated as advance tax paid. If advance tax or tax paid is given in trial balance, it is treated as assets and recorded on the assets side of balance sheet.
What is the entry of income tax paid?
Debit your Income Tax Expense account to increase your expenses and show that you paid the tax. Credit your Cash account to reduce your assets. This shows that you have less cash after paying the tax expense.
What is SBI apprentice salary?
| SBI Apprentice Salary 2021 | |
|---|---|
| Post | Stipend |
| SBI Apprentice | Rs.15000/- Per Month |
What is the entry for outstanding salary?
Outstanding salary is added to the salary and shown on the debit side of profit and loss account. It is further shown under the head current liabilities in the balance sheet. Outstanding salary is also known as Salary due (or) Salary payable.
What are two effects of outstanding expenses?
Outstanding expenses have the following two effects on the final accounts:
- “Outstanding Salaries” is an expense of 2019 because services of the employees have received and will be charged as an expense to the Profit and Loss Account of 2019.
- At the same time the amount of “Outstanding Salaries” is payable yet.
What is the journal entry for insurance premium?
Let us go through the journal entry for insurance premium to understand it better. However, all insurance premium is not deducted as a business expense. If the owner of a business makes insurance premium payment from his personal account, then there is no journal entry required in the company books.
What type of account is insurance premium?
Life insurance premium is classified as a personal account, since the insurance premium paid represents the amount paid for an individual.
