Insurance claims

as the amt is in the name of company so company will pass

bank Dr

to insurance Cr

and then

insurance dr

to employee cr

Medical Expenses             Dr.

                To Employee

(on submission of bills by employee)

Bank                                 Dr.

                 To insurance Claim

(on receiving the money from insurance company)

Employee                       Dr

                 To bank

(on payment to employee)

to close both medical exp account and insurance claim a/c you can pass another entry

Insurance claim A/c                    DR.

         to Medical Exp a/c

evenif, you dont pass the above entry,both the account will go to profit and loss a/c and effect will remain the same