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event occur after balance sheet date

This query is : Resolved 

Respected Experts

In 15.01.2008, there is a fire in godown of a PSU company.company booked rs. 1 crore as a claim amount and entry has been passed in january. in april month insurance company grant claim rs.80 lakh. what are the accounting treatment in the balance sheet as on 31.03.2008. balance sheet date is 05th may 2008.in which amount we shown in balance sheet.

On 31.03.2008 pass following entry

Insurance Claim Receivable A/c Dr. 1.00

To Purchase A/c Cr. 1.00

In April month - pass following two entries

Bank A/c Dr. 0.80
To Insurance Claim Receivable A/c 0.80

&

Loss Due to Fire A/c Dr. 0.20
To Insurane Claim Receivable A/c Cr. 0.20



Dear Ashish,

As per AS-4 "events occuring after the Balance Sheet Date", the entry for claim receivable should be passed only for Rs. 0.80 Lacs.



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