car got into accident,and expenses of rs.247000 been paid, which includes rs.100000 for engine.and insurance claim of rs.135000 received later. how to account expenses? whether engine expnses to be added to assest. and other expenses to p & l. insurance claim should be credited in assest a/c or p& l a/c.......give me guidance.
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Insurance claim accounting
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Expenses should be charged to P & L A/c after considering amount received from insurance company.
when yu are paying for the repairs and maintenance, yu can debit the amount paid in repairs and maintenance - vehicle account and subsequently, when you receive the insurance claim, yu can credit the same account with the amount and the net amount will be the expenses. Hope, if my answer is not correct , others can correct
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