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Thread: Insurance claim paid out

  1. #1
    Full Member
    Join Date
    Mar 2014
    Cape town
    Thanked 1 Time in 1 Post

    Insurance claim paid out

    Morning all,

    Our business have 3 bakkies which we have instalment sales on. The one bakkie got damaged so we had to do some repair work (panelbeating and spraypainting).

    The Insurance just paid out R 18 000.00 into our account.

    My question is how do I deal with this transaction? and is there any VAT implications on this amount received etc?

    Thank you

  2. #2
    Silver Member
    Join Date
    Feb 2016
    Thanked 54 Times in 48 Posts
    Hi Mango, you can either credit the repairs expense account or you credit "proceeds from insurance claim". The amount should be inclusive of VAT so account for it.

  3. Thanks given for this post:

    mango (02-Aug-17)

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