stock destroyed due to fire - whats the treatment in books

entry shld be

insurance co. a/c dr
loss by fire a/c dr
to purchases

bank
to insurance co.

Dr. Bank A/c. (Amount Recd.) Dr. Loss of Stock by Fire A/c. in P&L (Difference between full value of stock destroyed and compensation) Cr. Trading or Manufacturing A/c. (Full value of stock destroyed) Disclose as per AS 5

Bank a/c. Dr. (amt. recd. from ins.) Loss by fire a/c. (amt. of loss - diff. bet. full value of goods destroyed by fire and amt. recd. from insurance) To Fin. stock or raw mat stock a/c. (as the case may be) (with full value of goods destroyed) P & L a/c. Dr. To Loss by fire a/c. Disclosure as per relevant AS i.e., AS - 5 If the event is after the B/S date, then disclosure should be as per AS - 4.

1. If destruction took place during the financial year:- a) If there is insurance claim: Insurance co. a/c dr To Purchases b) If no insurance claim: Loss on fire a/c dr To Purchases 2. When insurance claim is fully received: Bank a/c dr To Insurance co. 3. When insurance claim is partly received: Bank a/c dr Loss on fire a/c dr To Insurance co. 4. If destruction took place after financial year: Just disclose in directors report as per AS 5 5. If you are not sure about the receipt of claim, simply show that as loss as per AS 9.

For Insurance Claim Accrued: Dr. Insurance Co. A/c (With amount of claim) Dr. Loss Due to Fire (Difference of two) Cr. Goods Distroyed By Fire (The Value of Stock Distroyed) This Account will be grouped in Manufacturing / Trading A/c. There is no need to reduce purchase or charge to stock a/cs.

INSURANCE CLAIM RECEIABLE A/C DR TO PURCHASES A/C. BANK A/C. DR T0 INSURANCE CLAIM RECEIABLE IF AMOUNT SHORT RECD :- PROFIT & LOSS A/C DR TO INSURANCE CLAIM RECEIABLE

accounting treatment for loss of stock by fire

goods destroyed by fire debit loos of fire ac is ok why credit in purchsee ac why not credit in cash

Could anyone tell, if there is additional claim received over and above the actual loss what would that be treated as?