Damaged material
This query is : Resolved
Baljinder Singh
(Querist)
27 June 2009
Dear Sir,
We have raised Invoice to customer for sale of material, but in transit material damaged. Party return back material to us.
The damaged material claim received from Insurance company.
My question is : Is the Insurance claim received shown under the head of misce. Income or down the purchase value of raw material materail ?
Pls give me your valuable advise.
Baljinder Singh
We have raised Invoice to customer for sale of material, but in transit material damaged. Party return back material to us.
The damaged material claim received from Insurance company.
My question is : Is the Insurance claim received shown under the head of misce. Income or down the purchase value of raw material materail ?
Pls give me your valuable advise.
Baljinder Singh
Sanjeev Jain
(Expert)
27 June 2009
Hie Baljinder,
01. Purchase value will be down with the amount of damaged material.
02. Insurance claim will be credited in the profit and loss account as Misc income as you stated in your ques.
03. Debit the Insurance co. with the claim amt. in the Loans & Advances side.
01. Purchase value will be down with the amount of damaged material.
02. Insurance claim will be credited in the profit and loss account as Misc income as you stated in your ques.
03. Debit the Insurance co. with the claim amt. in the Loans & Advances side.
28 June 2009
May be reflected in the Trading Account as Insurance Claims
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