Insurance Claims-Receipts

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Querist : Anonymous

Querist : Anonymous (Querist)

09 January 2011 How to pass the journal entries for insurance claim received for damaged depreciated asset?

CA Shailesh Kumar Bhagat

CA Shailesh Kumar Bhagat (Expert)
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09 January 2011 If partly damaged , adjust the claim against repair & maintenance exp.

If fully damaged , write off the assets and adjust the claim against the write off assets.

In both the cases diff will be transfered to P& L a/c.

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CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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09 January 2011 Dr Bank A/c and Credit the Asset A/c

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CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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09 January 2011 Dr Bank A/c and Credit the Asset A/c

When the asset is permanently damaged and no repair is being carried on.

Dr Bank A/c and Credit Profit & Loss A/c
In case repairs have been carried on and such repairs is being claimed as an expenditure in Profit & Loss A/c