" Record of Claim of insurance is special type transaction and only when we record when actual claim we get . In this we should make new group of sundry insurance under prime group of current asset after this we should create ledger of insurance company and other ledger one time . "
When claim relating to fixed assets is admitted
Insurance company a/c ( Under Sundry Insurance account ) Debit
Particular fixed asset account ( under Fixed asset ) Credit
* Above voucher entries means insurance company is receiver , he has taken our burden of loss And if loss happen , it mean we sent of fixed asset to insurance company means fixed asset goes out , so it will be credit .
When the claim relates to stock in trade
Insurance company account ( under Sundry insurance account ) Debit
To stock destroyed account or damaged account Credit
Above voucher entries means insurance company is receiver , he has taken our burden of loss of stock
And if loss happens , it mean we sent of goods to insurance company means goods goes out , so it will be credit .
When claim relates to loss of profit
Insurance company account(under sundry insurance account ) Debit
Profit and loss account Credit
When insurance claim amount is received
Bank account ( Under bank account ) Debit
Insurance company account ( Under sundry insurance ) credit
This entry means that we are receiver of cash and bank is our representative . So , this account Will debit in voucher entry and Insurance company is giver of claim amount and this entry is simply passed under the rules of double entry .
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