People are don’t tack care of stores and they are facing the loss of the stock by the fire. This is a general query you an share with here now the bestessays review is giving an insurance offer for your link branches and this is good for the stockholders.
For loss of stock by fire, the following entries shall be passed.
loss of stock by fire is an event and which result in reduction of stock, which shall be reflected in the books by passing the stock journal entries.
Some clients will take insurance for their stock, in such case the below entries shall be passed.
Insurance recoverable from insurance party
a. Firstly stock shall be reduced by stock journal entry and input GST credit shall be reversed as per section 17(5) of CGST act.
b. Insurance receivable entry
Insurance Receivable a/c
to Insurance income a/c (Insurance party name)
c. Insurance received entry
Bank a/c
Insurance income (For diff in receivable & received)
to Insurance Receivable a/c
Hope got clarity..
People are don’t tack care of stores and they are facing the loss of the stock by the fire. This is a general query you an share with here now the bestessays review is giving an insurance offer for your link branches and this is good for the stockholders.