Question

is claim received is written in balance sheet​

Answer 1

$\mathbb{\red{\huge{HEY\:MATE}}}$

$\boxed{HERE\:IS\:YOUR\:ANSWER}$

$\mathfrak{\green{ANSWER:}}$

⭐Insurance claim can be explained with one example. 

✔Assume that goods lost in fire and and received insurance claim 1. 

Goods lost by fire Rs.8000

a) Goods lost by fire are the loss of business, so loss by fire account will be debited. 

b) There is decrease in goods or stock at cost, so purchase account will be credited.Loss by Fire Account Debit8000Purchase Account Credit80002. 

Goods insured and a claim is admitted by insurance company in full . 

a) Insurance company will be our debtor. 

Transaction has increase in debtors because we have to get money from insurance company. 

So, this account will be debited. 

b) Decrease in loss by fire, so this account will be credited. 

Insurance company Account Debit8000Loss by Fire Account Credit8000