Insurance claim accounting

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

12 September 2015 during the year 2014-15 there was a cyclone and our factory buildings and machinery and stocks were damaged. we have applied for insurance claim. The claim was settled in the year 2015-16 by the insurance company. the insurance company has not accepted our claim in full and settled a part amount only. what are the accounting entries to be passed in the year 2014-15 and in the year 2015-16. please clarify

Vishnu Saboo

Vishnu Saboo (Expert)
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15 September 2015 in year of loss - Amt of loss ascertained
Loss by cyclone/natural claimty Dr
To assets
Insurance claim receivable Dr
To Insurance claim income

In year of claim received - With amt received from insurance co.

Bank A/c dr
to insurance claim receivable

short amount entry
Insurance claim income Dr
To insurance claim receivable