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Car Accident Accounting Entry

SHEKHAR SARANG (ACCOUNTS EXECUTIVE) (47 Points)

03 June 2011

How to pass entry when the Motor car accident is done & motor car is send to the garage for repairing. The Motor Garage company issue a bill of Rs.10000.00 for damage repairng charges.

On other side we have applied for car damage claim from insurance company. & insurance company is paid Rs.9500.00 for settlement of claim.

How to pass the entries.

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12 Replies

Harpreet (* * * * * *) (1670 Points)
Replied 03 June 2011

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

CA ADITYA SHARMA (CA IN PRACTICE ) (16719 Points)
Replied 03 June 2011

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

to cash

"(being repair done)

for claim received

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

to insurance claim

( being claim received)

CS,CA F,Numrologi TusharSampat (CS CA F Numerologist Astrologer Graphologist Face reader Vastu Expert) (85930 Points)
Replied 03 June 2011

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.

jaganathan (accounts executive) (272 Points)
Replied 03 June 2011

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.

pinky (acct officer) (24 Points)
Replied 03 June 2011

reapir & maintenace a/c .. dr

bank a/c .................cr

2) bank A/c.......... dr

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

pinky (acct officer) (24 Points)
Replied 03 June 2011

here is one query

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

Harpreet (* * * * * *) (1670 Points)
Replied 03 June 2011

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

CA ADITYA SHARMA (CA IN PRACTICE ) (16719 Points)
Replied 03 June 2011

it will be under the head indirect income

Aparna Raja K.C (Student) (520 Points)
Replied 10 June 2011

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 :)

sricharan (IPCC student) (23 Points)
Replied 12 June 2011

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