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- Dec 19, 2022
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Rental Car businesses has an insurance claim against one of its written-off vehicles that is an leased asset.
The insurance company provides the following pay-out information:
Pre Accident Value $68,000.00
Less ITC ($ 6,181.82)
Less Excess ($ 3,000.00)
Total $58,818.18
The insurance then pay-out of the lease of $50,899.20
The amount received in the bank account is $58,818.18 - $50,899.20 = $7,918.98.
The customer then contributions the $3,000.00 excess and is received in the bank account. Therefore the total amount received by the business is $10,918.98.
The following questions.
How do I journal in the ITC Credit?
Do I raise an excess expense and then credit this with the amount received by the customer to nil this out?
The insurance company provides the following pay-out information:
Pre Accident Value $68,000.00
Less ITC ($ 6,181.82)
Less Excess ($ 3,000.00)
Total $58,818.18
The insurance then pay-out of the lease of $50,899.20
The amount received in the bank account is $58,818.18 - $50,899.20 = $7,918.98.
The customer then contributions the $3,000.00 excess and is received in the bank account. Therefore the total amount received by the business is $10,918.98.
The following questions.
How do I journal in the ITC Credit?
Do I raise an excess expense and then credit this with the amount received by the customer to nil this out?