Treatment of insurance claim received against fire loss

Yes..  Since you have debited the entire amt of loss as expense the previous year you have no option left but to book the insurance claim received as income.

see Mr arun ji, since the loss of rs 6 lac by fire has been accounted as expense by ur client in the year of occurence, then the further, if any claim received on account of such fire shall be treated as an EXTRAORDINARY item, if such claim is received by ur client after the b/s date but before auditor's report then as per AS-4 its should be accounted as adjustible event from the loss, by deducting income from expense and the net shall be treated as loss from fire.
further, if such claim is lodged with the insurance compamy before the auditors report but claim is not yet received then should be shown in asset as insurance claim receivable in the year of loss.

hope this will help u
Harshit
+918955737073

Thanx for valuable suggestion