Adjustment entry

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

03 August 2012 Dear Sir /Madam,

We applied for vehicle insurance claim of rs.12550/- but insurance company pass our claim rs.6663/- then how we put entry in tally.

Aditya Maheshwari

Aditya Maheshwari (Expert)
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03 August 2012 expenses to be debit by Rs. 12,550 and credit rs. 6663 when claim received. and net amount in expenses a/c

JOYAL GEORGE

JOYAL GEORGE (Expert)
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04 August 2012 It depends on how you have accounted the loss on the vehicle. If you have booked the entire claim (assuming that it is the actual loss), then you have to credit the amount received i.e, Rs.6,663/- as insurance claim received (income).

If you have not booked the loss earlier, then it depends on the WDV of the vehicle, if the vehicle is lost. If the vehicle is lost, entire WDV outstanding in the books should be written off as loss and you may credit the claim received as income (you may even opt for debiting only the net loss after claim)
If the claim is towards the repairs of vehicle and the asset is still in use, and if you have not booked any loss earlier, you can credit the entire claim as income or even adjust against the repairs charges.

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