Loss of Assets from Fire at factory

Dear friend,

Receivable comes into picture when we expect fund to receive in near future. In that scenario, instead of debiting bank a/c, we debit Other Receivable GL. Later when received the claim cheque, then Other Receivable a/c will be nullify by crediting this GL and debiting Bank a/c.

Ultimately, the accounting entry will remain same. Please note that insurance claim is not an income.

Thanks.