Insurance claim

Debtors a/c

To Sales a/c

then when goods are rejected

Loss on sold goods 10,000

Bank a/c 1000

To returned goods sales 1000

To Debtors a/c 10000

when goods are sold and you have insurance policy purchased for 100₹

Prepaid insurance a/c

To Bank a/c

when you claimed for whole goods,

Debtors/Receivables a/c 10000

To Insurance claim a/c 10000

next, after you received the claim 

Bank a/c 10000

To Debtors/receivables a/c 10000

im not sure if how to compensate insurance company in return, but probably it’s like

Bank a/c 1000

To Returned goods sale 1000

(this is included above)

Thank you for your reply