Car Accident Accounting Entry

Vehicle Running & Maintainance Expense Dr 10000/-

To Bank/Cash   Cr 10000/-

Other side

Other income Cr 9500/-

Bank Dr 9500/-

Since the claim need to consider like other income

vehicle maintenance ac- - - - - - - - - - -dr.

to cash

"(being repair done)

for claim received

bank ac --  -- - - - - - - - - - - - - - - -dr. 

        to insurance claim

( being claim received)

Originally posted by : future ca
	vehicle maintenance ac- - - - - - - - - - -dr. to cash "(being repair done) for claim received bank ac --  -- - - - - - - - - - - - - - - -dr.          to insurance claim ( being claim received)

Agreed.

Originally posted by : future ca
	vehicle maintenance ac- - - - - - - - - - -dr. to cash "(being repair done) for claim received bank ac --  -- - - - - - - - - - - - - - - -dr.          to insurance claim ( being claim received)

Yet it is the right entry.

1)

reapir & maintenace a/c .. dr

  bank a/c .................cr

2) bank  A/c.......... dr

        insurance caliam ...........dr

here is one query 

in which head we will take insurance claim like asset or exp, liablitiy ??????/

Indirect Income bcoz the same is not your operational income dear.

it will be under the head indirect income

Originally posted by : future ca
	vehicle maintenance ac- - - - - - - - - - -dr. to cash "(being repair done) for claim received bank ac --  -- - - - - - - - - - - - - - - -dr.          to insurance claim ( being claim received)

It will be credited in P&L :) as indirect income :)

amount recived from insurence company should be charged as capital expenditure and the amount not recived (i.e, repaircost - amount recived from insurece co)should be charged as expenditure to p&L A/c

If the car is fully destroyed - and got some calim from the insurance co...what shoud be the entries?  If car destroyed then waht we do with Car A/c?

Accident Claim Receivable (current asset)

 To bank

When Claim Received 

Bank Dr.

Repair And Maintinance

      To Accident Claim Receivable