Insaurance claim

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

15 December 2011 if every year i recognize insurance premium as expense so when any asset lost worth 90000 out of which it is estimated that 75000 would be recovered so i would pass the following entry
Lost by theft a/c Dr. 90000
To Asset A/c 90000
when it actually becomes due then
Profit & Loss A/c Dr. 15000
Insurance Claim A/c Dr. 75000
To Loss by theft 90000
when received/ due
Insurance Co./Bank Dr. 75000
To Insurance Claim 75000

OR alternatively
P&L A/c Dr.
Insurance co. Dr.
To Asset
in first alternate in which category insurance claim shall be classified

i)Revenue
ii)Current Asset In Tally

Guest

Guest (Expert)

15 December 2011 Pass entry as :

Loss by theft a/c dr. 90000 (expenses a/c)
to Assets a/c 90000

When you receive claim, pass following entry:

Bank A/c Dr. 75000
To Insurance Claim 75000 (Income A/c)