Accounting query

A/c entries 607 views 3 replies

Sr. Finance Executive

25 Points Joined December 2014

Dear Reader,

I have a doubt as to what should be the apt accounting for the following scenerio:

Disposal of Asset against Insurance Claim, where Book Value of the asset is 100,000 accumulated depreciation is 95,000 and claim is 90,000.

Please help as to what should be the Journal Entry for this particular scenerio.

Thanks

Gurjinder

Replies (3)

ADVOCATE- TAXATION ADVISOR

427 Points Joined November 2011

1. BANK A/C DR ..... 90000 TO INSURANCE CLAIM. (Under p& l) 90000 2. LOSS ON DISPOSAL OF ASSETS A/C DR ( p&l).... 5000 TO. ASSETS A/C. 5000 3.

Practising CA

8944 Points Joined December 2013

Perfect ans by Mr.Naveesh. however, Depreciation to be taken care of too.

C.E.O

356 Points Joined November 2007

The result is profit of Rs 85,000/-. Close prov for depreciation account also.

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