Asset stolen and money recovered from Security company

This query is : Resolved

Viren Gandhi (Querist)
Follow

31 May 2020 Dear All,

We were using one laptop for almost three years and provide the depreciation in books as per our company policy. Three days back some one stolen from office.

Since we have outside security agencies hence mangement took the decision to purchase the new one and debit all the money to security agencies

Pls help me with the accounting treatment for stolen assets as well as purchase the new one and money recovered from outside agencies

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

31 May 2020 Capitalise new laptop, against it charge off old laptop and the balance amount take it to other income.

Message likes : 1 times

CA Ankur Tripathi

CA Ankur Tripathi (Expert)
Follow

01 June 2020 Security agency A/c Dr ( Amount of new laptop)
To Bank

New Laptop A/c Dr xxxx (Purchase Amount)
To Old laptop A/c ( WDV)
To other income (Balancing figure)

Bank Dr
To security agency
(On receipt of payment from security agency)

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now