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.
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
CAclubindia
