Journal Entry for Loss of Insured Goods/Assets (original) (raw)

Last Updated : 17 Apr, 2026

Sometimes insured goods are lost by fire, theft, or any other reasons. There can be three cases raise related to the loss of insured goods or assets.

**A. Claim does not get accepted by the Insurance Company:

**Journal Entry:

**Example:

  1. Goods lost by fire ₹50,000. Insurance co. does not accept the claim.
  2. Assets lost by fire ₹20,000. Insurance co. does not accept the claim.

**Solution:

**B. Insurance Company partly accepted the claim:

**Journal Entry:

**Example:

  1. Goods lost by fire ₹50,000. Insurance co. accepted the claim worth ₹30,000.
  2. Assets lost by fire ₹20,000. Insurance co. accepted the claim worth ₹15,000.

**Solution:

**C. Insurance Company fully accepted the claim:

**Journal Entry:

**Example:

  1. Goods lost by fire ₹50,000. Insurance co. fully accepted the claim.
  2. Assets lost by fire ₹20,000. Insurance co. fully accepted the claim.

**Solution:

**For receiving the claim money:

**Journal Entry:

**Example: Amount of claim money ₹50,000 received.

**Solution: