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
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
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)
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