Closing stock destroyed & claim received

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

23 October 2012 Dear Sir/Madam,
I have to confirm that if the closing stock of a person is destroyed & the claim is received.
So whether as per AS 2, this receivable is to be shown as closing stock value under Financial Statements???

And also guide me that if this person has taken a loan against stock, then can he show this receivable amount as stock to his banker???

Anand Modi

Anand Modi (Expert)
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24 October 2012 In my opinion you have to seperately show on the debit side of P & L a/c the amount of loss and on the credit side the amount receivable from Ins. Co.

In Balance Sheet also you have to show seperately the amount of claim receivable from Ins. Company. It cannot be clubbed under debtors and cannot be shown as receivable under financial statements.

If the loan is against stock then does your banker has obtained lien on Insurance of Stock or not?

Querist : Anonymous

Querist : Anonymous (Querist)

30 January 2013 Thanks.......