Total loss insurance claim
25 June 2021 Purchased vehicle on 30.11.20 for Rs. 33 lakhs. Vehicle met with accident on 26.03.21. Total loss claim received Rs.24 lakhs, scrap value received Rs.1 lakh, what is the accounting treatment and accounting entries for this. Kindly advice.
25 June 2021 Credit 25 lacs to vehicle account. Balance amount of book value debit it to loss on assets due to accident.