30 August 2013
What is the most preferable way to account Insurance Claim received ??? Shall it be shown as income or be reduced from the insurance expenses ??
Case :A ltd. paid Rs. 25,500/- as insurance for car on 02.04.2012.The car met with an accident & a claim of Rs. 10,200/- was received on 12.12.2012.Further, repairing expenses did amount to Rs.21,000/-. What should be the most appropriate accounting entry???