INsurance Amt recovered , where to Account for

We were Import Dairy Machinery from Japan, during Transit it was Damaged. We paid repairing Cost & Claim the same from marine Insurance. but before receiving the claim . we capitalized the amt in plant & machinery. Now the Insurance claim we received from marine Insurance co, it is 37 lacs

Please tell me the amount which we recieved will adjusted in plant & machinery or Misc Income

 

Please Suggest

 

Rajesh Sharma

 

Replies (1)

If you have spent money to repair the damages, the claim amount has to be adjusted against the amount spent.

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