Insurance claim adjustment
This query is : Resolved
05 July 2016
Dear all,
In last year, our stock theft of approx. 450000 then we filed a claim to insurance company for bear of our loss. Now in current year we received the claim of rupees 350000 from the insurance company.
myself pass these two entries:-
1. for book the loss in last year or rupees 450000
loss on theft a/c dr.450000
to stock a/c cr.450000
2. For in current year we book income 350000
Bank a/c dr. 350000
to insurance company a/c cr.350000
shall myself correct or not, need you all view point on this? thanks
In last year, our stock theft of approx. 450000 then we filed a claim to insurance company for bear of our loss. Now in current year we received the claim of rupees 350000 from the insurance company.
myself pass these two entries:-
1. for book the loss in last year or rupees 450000
loss on theft a/c dr.450000
to stock a/c cr.450000
2. For in current year we book income 350000
Bank a/c dr. 350000
to insurance company a/c cr.350000
shall myself correct or not, need you all view point on this? thanks
05 July 2016
Instead of Crediting Insurance Company by rs 35L , you need to credit Insurance Receipts (Income) and recognise it as your income. Because you have already claimed loss in Previous FY
05 July 2016
sir, thanks for share knowledge, it is difference balance rs100000, shall i show it, nor it is write off in last year.
05 July 2016
no . No need of showing differential amount. As Net effect of Loss Booking Entry of last year and income booking of current year is following:
Stock- down by Rs 4.5 lacs (Actual theft of stock)
Bank- up by rs 3.5 lacs (Proceeds amount)
Net Loss of Rs 1 lacs (4.5 lacs loss and 3.5lacs income)
Stock- down by Rs 4.5 lacs (Actual theft of stock)
Bank- up by rs 3.5 lacs (Proceeds amount)
Net Loss of Rs 1 lacs (4.5 lacs loss and 3.5lacs income)
05 July 2016
Ok thank you sir, now i am going to correct my entry
last year same
loss on theft dr. 450000
to stock cr.450000
in current year
bank dr. 350000
to Insurance claim cr. 350000
now shall i right. thanks sir,
last year same
loss on theft dr. 450000
to stock cr.450000
in current year
bank dr. 350000
to Insurance claim cr. 350000
now shall i right. thanks sir,
05 July 2016
yes,,, it is ryt....
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