04 August 2012
It depends on how you have accounted the loss on the vehicle. If you have booked the entire claim (assuming that it is the actual loss), then you have to credit the amount received i.e, Rs.6,663/- as insurance claim received (income).
If you have not booked the loss earlier, then it depends on the WDV of the vehicle, if the vehicle is lost. If the vehicle is lost, entire WDV outstanding in the books should be written off as loss and you may credit the claim received as income (you may even opt for debiting only the net loss after claim) If the claim is towards the repairs of vehicle and the asset is still in use, and if you have not booked any loss earlier, you can credit the entire claim as income or even adjust against the repairs charges.
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