Insurance claim against Damaged Vehicle and Repair Bill

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)
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.

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