what will be the accounting entry/ entries in the following case (Loss by fire / insurance claim): A lawyer's office ( registered as a company) which is insured for 5,00,000/-, is destroyed by fire.
The Co's books show the following fixed asset,at written down value ( depriciated value) all of which have since been destroyed by fire and nothing could be realised from the destroyed assets :
1) Furniture and fixtures : 20000/-
2) Computers and office equipments :
40000/-
3) Air condtioners, water coolers : Rs. 20000/-
4) Other office equipments : Rs. 20000/-
Total of Fixed Assets (w.d.v) = Rs. 1,00,000/-
Besides, destructon of the above fixed assets, office records etc, the fire had caused damage to walls, floors, ceilings and to the total office premises. The cost of restoratation of office premises works out to 300000/- (estimated).
Accordingly,the company has lodged a claim of Rs. 4,00,000/- with the Insurance co.
what entries should be passed to book the loss by fire?
2007-10-06
01:54:52
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2 answers
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asked by
happy
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Other - Business & Finance