Insurance claim received

What is the jornal entry for insurance claim received for a car? actual expense on repairs and maintenance- 213600, claim received- 54674
Replies (3)
Quick Summary
This discussion explains the journal entries required when receiving an insurance claim for car repairs. It details how to book the received claim amount and record the repair and maintenance expenses. The explanation covers crediting the P&L account for the admitted claim and subsequently recording the payment of expenses.

    First  you have to book  entry  with  Insurance claim A/c by crediting  to P&L  A/c  for claim admitted  by Insurance  Company 

1)  when  you  received  amount  of  Claim 

     Bank                             A/c      Dr      54674 /- 

     To  Insurance  Claim      A/c      Cr                             54674 /- 

(   Being  amount  received  from Insurance company  against  claim ) 

Insurance  claim  under  indirect  income in  P&L account 

 

2)   Repair  &  Maintenance     A/c     Dr 

      Input   CGST                     A/c      Dr 

      Input   SGST                     A/c      Dr 

      To sundry  Creditors          A/c     Cr 

(  booking  of  maintenance & repair  expense  of Car ) 

 

3)   sundry  Creditors             A/c       Dr 

     To  Bank                            A/c       Cr 

(    Payment  of   expense )  

 

 

 

 

Is there any other entry for the loss incurred?

What is  the  depreciated  value  of the car  ?  

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