Claim amount received from the insurance company

Dear Experts,

1. A theft happened in a company place and lost the stock in trade.

2. At that time, it was observed the insurance claim amount will cover the cost of the stolen goods.

3. Later period ( in the next financial yaar) the claim amount received from the insurance company is less than the expected claim amount.

Example for recognised journal entries

FY 2021-22

a. Lost on theft A/c Dr Rs. 50,000.00
Insurance Company A/c Rs 550000.00
To Purchase A/c RS 6,00,000.00


P&L A/c Dr Rs 50,000.00

To Lost on Theft A/c Rs 50,000.00



B. FY 2022-23

Bank A/c Dr Rs 475000.00

To Insurance Company A/c Rs 475000.00.



Query :


Loss due to theft during FY 2021-22 A/"c Dr Rs 75000.00
To Insurance Company A/c Rs 75, 000.00


Is this accounting entry os correct or not?
Replies (2)
Quick Summary
This discussion explores the correct accounting treatment when an insurance claim received for stolen stock is less than initially expected. It provides example journal entries for FY 2021-22 and FY 2022-23, questioning the accuracy of a specific entry and seeking clarification on the pilferage amount versus the insurance payout.

What is the pilferage amount and how much did the insurance company gave?

Is there any document received from Insurance Company regarding suppose to receive 550000/- in the year 21-22 to record  the transaction   in the books of accounts . 

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