Insurance receipt

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CA Monica Patel (Querist)
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01 February 2013 Please resolve my querry.

On the receipt of Insurance claim of vehicle, what to do with this transaction in accounts.

Its capital receipt or revenue?

please inform me on urgent basis.

CA Kishore Tallam

CA Kishore Tallam (Expert)
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08 February 2013 If u have already charged off the WDV of the related asset in earlier year, disclose it as "Insurance claims received" under "Other Income".
If the related asset is charged off in current year, then account the difference between WDV and insurance proceeds as "Gain / loss on disposal of fixed asset" under "Other Income" or "Other expenses" as the case may be.

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