Insurance compensation received

Hey Can anyone help me on this Matter???

 

My client is having a plant in the hilly areas of Sikkim.Due to the earfth quake in the Sep 11 the plant & its machineries were affected.For this the client has incurred additional repairs & maintainance expenses.

Also my client is possessing an insurance cover to meet that repair & maintainence cost.Now @ the time of incurring expense it was booked inot the P&L.

Now the query is whether the compensation recd from insurance companeies should be shown seprately on "Cr" of p&: or whether it should be shown as deduction from the specific expense incurred for repairing & maintainence of the P&L A/c.

Please reply

Thanks in advance

Replies (1)
 

it can be shown net of expenses in the p/l a/c

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