I am company
my vehicle say CAR met an accident
total expenditure say on repair and maintainance was 250000
I paid 20000
rest 230000 paid by insurance company
kindly suggest treatment in books
1. Repairs expenditure
Vehicle Repairs A/c Dr 2,50,000
To Bank 20,000
To Service centre 2,30,000
2. When insurance company settles the repairs exp to service centre
Service centre A/c Dr 2,30,000
To Insurance claims 2,30,000
3. at the end of the year Repairs expenditure charged to profit and loss a/c and
insurance claims amount to be credited to profit and loss a/c
CAclubindia
