Hello!
Can anyone confirm/correct booking for the following example: fire has happened in premises of a company, insurance was received.
1. Booking the loss:
C Non current assets (furniture; equipment)
D P&L Gain/loss from activities not related to business (or whatever the name of the account is)
2. Booking received compensation from insurance
C P&L gain/loss from activities not related to business
D Cash
Can anyone confirm/correct booking for the following example: fire has happened in premises of a company, insurance was received.
1. Booking the loss:
C Non current assets (furniture; equipment)
D P&L Gain/loss from activities not related to business (or whatever the name of the account is)
2. Booking received compensation from insurance
C P&L gain/loss from activities not related to business
D Cash