Insurance claim for stolen stock
Poodle
Registered Posts: 695 Epic contributor 🐘
Hi
I have a client who had approx £3k stock stolen and the insurance co paid up.
My question is how do I account for this in the accounts and what is the tax position?
Poodle
I have a client who had approx £3k stock stolen and the insurance co paid up.
My question is how do I account for this in the accounts and what is the tax position?
Poodle
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Comments
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I would credit purchases and treat as if stock had been returned to supplier. As the stock has not been sold and the client has been paid for his losses the tax position is that the cost and insurance offset each other and therefore there is no effect on tax.0
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Thank you groundy,
That makes sense I just could not get my head around it, must be the time of the year:001_smile:
Poodle0
