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Thread: Insurance claim paid out

  1. #1
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    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
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    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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