Insurance claim adjustment

This query is : Resolved

KAKKADRAVI@YAHOO.COM8802495161 (Querist)
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05 July 2016 Dear all,
In last year, our stock theft of approx. 450000 then we filed a claim to insurance company for bear of our loss. Now in current year we received the claim of rupees 350000 from the insurance company.

myself pass these two entries:-
1. for book the loss in last year or rupees 450000
loss on theft a/c dr.450000
to stock a/c cr.450000

2. For in current year we book income 350000
Bank a/c dr. 350000
to insurance company a/c cr.350000
shall myself correct or not, need you all view point on this? thanks

ASHWANI DHANUKA

ASHWANI DHANUKA (Expert)
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05 July 2016 Instead of Crediting Insurance Company by rs 35L , you need to credit Insurance Receipts (Income) and recognise it as your income. Because you have already claimed loss in Previous FY

KAKKADRAVI@YAHOO.COM8802495161

KAKKADRAVI@YAHOO.COM8802495161 (Querist)
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05 July 2016 sir, thanks for share knowledge, it is difference balance rs100000, shall i show it, nor it is write off in last year.

ASHWANI DHANUKA

ASHWANI DHANUKA (Expert)
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05 July 2016 no . No need of showing differential amount. As Net effect of Loss Booking Entry of last year and income booking of current year is following:
Stock- down by Rs 4.5 lacs (Actual theft of stock)
Bank- up by rs 3.5 lacs (Proceeds amount)
Net Loss of Rs 1 lacs (4.5 lacs loss and 3.5lacs income)

KAKKADRAVI@YAHOO.COM8802495161

KAKKADRAVI@YAHOO.COM8802495161 (Querist)
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05 July 2016 Ok thank you sir, now i am going to correct my entry

last year same
loss on theft dr. 450000
to stock cr.450000

in current year
bank dr. 350000
to Insurance claim cr. 350000
now shall i right. thanks sir,

ASHWANI DHANUKA

ASHWANI DHANUKA (Expert)
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05 July 2016 yes,,, it is ryt....

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