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 . 

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 11 July 2026
Article

SNCO

Mumbai

CA Inter

View Details
Company
ARTICLESHIP 08 July 2026
Article internship

AJAY SINGH AND CO LLP

Thane

CA Final

View Details
Company
29 July 2026
ACCOUNTANT

ONESTEP GST SOLUTION

New Delhi

B.Com

View Details
Company
Featured 16 July 2026
CA Inter, CA Intermediate, CA IPCC, CA CPT, CA SemiQualified

Vakilsearch.com

Chennai

CA Inter

View Details
Company
16 July 2026
Manager - Finance & Accounts

Aliens Group

Hyderabad

CA Final

View Details
Company
ARTICLESHIP 28 July 2026
Article/Intern/Semi-Qualified/Fresher B.Com

VNSS & Co

Mumbai

Others

View Details
Company
23 July 2026
Semi qualified CA

Garg Bros & Associate CA

New Delhi

CA Inter

View Details
Company
Featured 18 July 2026
Senior Manager- Finance & Accounts

apricus india

Ahmedabad

CA

View Details
Follow