MADDIRALA SUNIL KUMAR (ACCOUNTANT) (30 Points)
18 October 2019I AM RUNNING CHILLIES BUSINESS AND PURCHASED CHILLIES FROM UNREGISTERED DEALERS(from farmers) DUE TO PURCHASE OF AGRICULTURAL PRODUCT FROM FARMERS GST IS EXEMPTED ON PURCHASE. ONE DAY WHEN I KEPT MY STOCK IN GODOWN THERE WAS A HEAVY FLOOD AND STOCK WAS DAMAGED DUE TO THIS I CLAIMED INSURANCE AND I GOT INSURANCE AMOUNT.
HERE MY QUESTION IS HOW I SHOW IN BOOKS OF ACCOUNTS & GST ABOUT INSURANCE CLAIMED AMOUNT AND CAN ANY ONE EXPLAIN HOW TO POST THE ENTRY IN BOOKS ?
Santosh Kulkarni
(Consultant)
(32 Points)
Replied 18 October 2019
Amount of compensation received towards loss suffered needs to be adjusted against in the inventory ( Write off inventory to the extent of claim received, if the loss is more than the compensation received) .
Question of GST will not arise here. Hence, no disclosure in the returns concerned for the period needs to be made.
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