Regarding accumalated deprication

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This discussion covers how to handle the accounting for a car that has been written off by insurance. The user received an insurance payout after their car was declared a total loss. They need guidance on how to record this transaction in their business accounts, specifically how to reconcile the insurance receipt and remove the car as an asset, including the correct journal entries for the bank deposit and the remaining loss.

Divyank Sharma

Divyank Sharma (Querist)
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19 February 2020 The car was crashed 6 weeks ago and has been written off by the insurance company (non-repairable) they offered me Rs3000 and I told them that it wasn't acceptable! They finally offered me Rs 4499 and then deducted the policy excess of Rs600 out of this.
So this week O received the cheque for Rs 3899 which was addressed to me personally. I need to transfer this money into my business account but I'm not too sure how I reconcile the payment or what to put it as and also how to remove the car as an asset.

Value of asset (At cost): Rs6000
Accumulated Depreciation: Rs1200