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Please help urgent: treatment of plant and machinery lost

Madan Mathod (Searching) (33 Points)

07 September 2011

PLEASE HELP ME : TREATMENT OF PLANT AND MACHINERY LOST IN CONTRACT / COST ACCOUNTING.

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3 Replies

CMA Shilpa Shinde (COST ACCOUNTANT) (217 Points)
Replied 08 September 2011

Dear Madan, 1)Make sure that Plant & Machinery issued to contract must have insured against related loss with General Insurance service providers so as to claim covered losses as per insurance agreement. 2)Need to get valuation analysis of lost P & M. 3)Entries required to FOR CLAIMING INSURANCE AMOUNT. 4)ON Settlement of Insurance claim related accounts like Bank a/c, Plant & machinery A/c and insurance claim receivable a/c, loss due to loss of P & M and Depreciation a/c needs to be accounted.

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CMA Shilpa Shinde (COST ACCOUNTANT) (217 Points)
Replied 08 September 2011

Originally posted by : shilpa shinde
	Dear Madan, 1)Make sure that Plant & Machinery issued to contract must have insured against related loss with General Insurance service providers so as to claim covered losses as per insurance agreement. 2)Need to get valuation analysis of lost P & M. 3)Entries required to FOR CLAIMING INSURANCE AMOUNT. 4)ON Settlement of Insurance claim related accounts like Bank a/c, Plant & machinery A/c and insurance claim receivable a/c, loss due to loss of P & M and Depreciation a/c needs to be accounted.

Further to Add,

In Costing this type of loss is not due to normal business conditions, hence abnormal and therefore may be transfered to Costing P & L A/c and not to specific product/ contract a/c.