19 October 2010
Hi Friends.. when during the year one of fixed assets loss due to theft but block is not empty & insurance claim made but that is pending, so how you deal during the year & when cliam received also. plz tel entirs also in books..
19 October 2010
Since the block is ceased to exist , no depreciation will by charged and written down value will be treated as short term capital loss.
When the insurance claim will be recived, it will be treated as short term capital gain.
19 October 2010
Charge depreciation on the remaining block.i.e. on the remaining WDV.
For the asset which is lost, can transfer the loss to p&L account and the amount to be receivable from the insurance company will shown in the current asset as receivable.
In books of account there is nothing to calculate for capital gain.
CAclubindia
