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Stock destroyed , insurance claim received- taxable or not ?

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Querist : Anonymous

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Querist : Anonymous (Querist)
21 March 2018 One of my clients stock of RM & wip got destroyed due to flood/waterlogging in godown due to heavy rain.

Insurance company paid some 300000 as claim .

My question :
1. What would be the journal entry and
2. Is this claim amount taxable ??
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K Srinivas, CMA CS

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K Srinivas, CMA CS (Expert)
21 March 2018 Claim received on loss of Stocks, Raw materials etc is a revenue receipt and is taxable
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