12 September 2015
during the year 2014-15 there was a cyclone and our factory buildings and machinery and stocks were damaged. we have applied for insurance claim. The claim was settled in the year 2015-16 by the insurance company. the insurance company has not accepted our claim in full and settled a part amount only. what are the accounting entries to be passed in the year 2014-15 and in the year 2015-16. please clarify
15 September 2015
in year of loss - Amt of loss ascertained Loss by cyclone/natural claimty Dr To assets Insurance claim receivable Dr To Insurance claim income
In year of claim received - With amt received from insurance co.
Bank A/c dr to insurance claim receivable
short amount entry Insurance claim income Dr To insurance claim receivable
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