Claim amount received from the insurance company
Marimuthu (Manager) (525 Points)
06 March 20231. A theft happened in a company place and lost the stock in trade.
2. At that time, it was observed the insurance claim amount will cover the cost of the stolen goods.
3. Later period ( in the next financial yaar) the claim amount received from the insurance company is less than the expected claim amount.
Example for recognised journal entries
FY 2021-22
a. Lost on theft A/c Dr Rs. 50,000.00
Insurance Company A/c Rs 550000.00
To Purchase A/c RS 6,00,000.00
P&L A/c Dr Rs 50,000.00
To Lost on Theft A/c Rs 50,000.00
B. FY 2022-23
Bank A/c Dr Rs 475000.00
To Insurance Company A/c Rs 475000.00.
Query :
Loss due to theft during FY 2021-22 A/"c Dr Rs 75000.00
To Insurance Company A/c Rs 75, 000.00
Is this accounting entry os correct or not?