Hi,
I have a query regarding loss of assets from fire at factory.
Fire incident occurred causing loss of Furnace in a factory and it is almost full loss.
Insurance claim received is lesser than WDV value.
how to book insurance receipts and loss of assets in book.
For Eg:
Assets Gross Value- INR 10,00,000
Accumulated Dep-INR 3,00,000
WDV-INR 7,00,000
Insurance claim received- 200,000
Should entry be like following :
| DR | CR | |
| Insurance Receivable | ₹200,000.00 | |
| Acc Dep A/c | ₹300,000.00 | |
| Loss of Assets from Fire | ₹500,000.00 | |
| Assets | ₹1,000,000.00 |
2nd- How loss of Assets from Fire will be shown in PNL? As extraordinary Item?
Please guide me.
Thanks in Advance
CAclubindia
