Celebrate Freedom with 20% OFF on CAclubindia Pro Subscription. Use Code: FREEDOM20

Insurance claim against Damaged Vehicle and Repair Bill

A/c entries 319 views 1 replies

karthickraj

Student CS

127 Points Joined February 2014

Hi,

Kindly clarify. A two wheeler of the company got accident sent for repairs. The two wheeler service provider give the bill Rs. 20,000, Insurance claim of Rs.15,000 received by Service Provider, balance Rs. 5000 payable to them by the company. Here-

Repairs & Maintenance A/c Dr. 20,000

To Service provider A/c Cr 20,000. we accounted but we paid Rs. 5000 only due to claim amount directly recd by Service provider, how to account Balance 15,000 Insurance claim.

Replies (1)

prasad Nilugal

GST Practitioner & Accounts

14941 Points Joined March 2014

Pass payment entry

Service provider A/c Dr 20000/-
To Bank A/c Cr. 5000/-
To Insurance Claim A/c Cr 15000/-
( repair charges payment after insurance claim)

Insurance claim A/c under Indirect Income p&L A/c

Assuming that your Company has insured two wheeler with insurance company , payment made directly to service provider.