accounting treatment of insurance claims ie journal entry?

Question

i want to know how can we pass journal entry for insurance claims. Should we pass any entry at the time of proceeding for this claims or after receiving claim amount from the insurance company. pls let me know

Answer 1

It would be best to use the allowable amount for the claims so you will have a true AR.

Answer 2

What does "pass an entry" mean?

I've always thought that "journal entry" was just a sloppy practice in accounting. There should be a category for insurance deductible, and uninsured losses, not to mention, reimbursements from insurance carriers.

Answer 3

the money account is an asset. All asset bills have a classic debit stability subsequently in case you employ a Tchart with debits on the left and credit on the final there might commonly be a selection on the left. All fee bills are liabilities and subsequently many times having a credit stability on the final area of a Tchart. once you're attempting to chop back an asset account (money) you will possibly might desire to credit the account or make an get admission to to the final area of the Tchart. to extend an fee account you will possibly might desire to make an get admission to into the left hand area of the Tchart or debit that account. subsequently what this magazine get admission to is doing. possibly attempt thinking approximately it as debits are constructive credit are adverse. sources are debits and liabilities are credit. so as to chop back an asset account you will possibly might desire to characteristic a adverse selection (credit) to the equation. i comprehend its perplexing formerly each thing yet as quickly as you get it it is going to come like 2d nature. I ought to comprehend I also have a masters in Accounting!