Insurance claim received

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

30 August 2013 What is the most preferable way to account Insurance Claim received ??? Shall it be shown as income or be reduced from the insurance expenses ??

Case :A ltd. paid Rs. 25,500/- as insurance for car on 02.04.2012.The car met with an accident & a claim of Rs. 10,200/- was received on 12.12.2012.Further, repairing expenses did amount to Rs.21,000/-. What should be the most appropriate accounting entry???

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CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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30 August 2013 insurance amount received need to credit the repair expenses which you incurred due to accident.

Querist : Anonymous

Querist : Anonymous (Querist)

07 September 2013 Thanks.

Now, if the claim received amounts to Rs. 50,000, how will that be shown in P & L A/c ???
What will be the accounting entry ???

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CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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07 September 2013 you can credit the repair expenses against which repair expenses incurred