Easy Office
LCI Learning

Stock destroyed , insurance claim received- taxable or not ?

This query is : Resolved 
Avatar

Querist : Anonymous

Profile Image
Querist : Anonymous (Querist)
21 March 2018 One of my clients stock of RM & wip got destroyed due to flood/waterlogging in godown due to heavy rain.

Insurance company paid some 300000 as claim .

My question :
1. What would be the journal entry and
2. Is this claim amount taxable ??
Profile Image

K Srinivas, CMA CS

Profile Image

K Srinivas, CMA CS (Expert)
21 March 2018 Claim received on loss of Stocks, Raw materials etc is a revenue receipt and is taxable

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

CAclubindia's WhatsApp Groups Link


Similar Resolved Queries


loading


Unanswered Queries



Live Budget News and Updates

Trending Online Classes

view all classess
Let's Talk Money: You've Worked Hard for It, Now Make It Work for You
Click here for more bestsellers


Answer Query



Quick Links