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Accounting query

A/c entries 676 views 3 replies

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)
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.
Perfect ans by Mr.Naveesh. however, Depreciation to be taken care of too.
The result is profit of Rs 85,000/-. Close prov for depreciation account also.


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