How to pass entry when the Motor car accident is done & motor car is send to the garage for repairing. The Motor Garage company issue a bill of Rs.10000.00 for damage repairng charges. On other side we have applied for car damage claim from insurance company. & insurance company is paid Rs.9500.00 for settlement of claim
& 300 Rs deducted from the driver salary . Pass the Jv
1) Payment Entry Dr Cr
R&M Motor expenses A/c 10000,
To Bank or Cash A/c 10000
(Towards motor vehicle repair charges )
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2) Receipt Entry
Bank A/c 9500
R&M Motor expenses A/c 9500
(Towards Motor insurance claimed ) - If you want pass the entry with insurance company name so bank to be debited and insurance company to be credited then Insurance company to be debited Motor expenses to be credited net off entry to be made
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3) JV for net off Motor Expenses
Fees and Fines A/c 300
To R&M Motor expenses A/c 300
(Towards motor maintenance charges deducted from driver salary )
Finally Motor maintenance expenses Only Rs.200 will be effected in P&L
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