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How to record property loss(stolen)

I had ipads stolen, how do i record that and also the insurance took 500 deductible out of payment how is that handled?

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Established Community Backer ***

Re: How to record property loss(stolen)

it depends

 

IF the ipads were held as fixed assets and have been depreciated then

calculate and post partial year depreciation

create an expense account called theft expense, then journal entries

debit ipad accumulated depreciation for the total in the account, credit theft exp

debit theft exp, credit the ipad fixed asset accounts for the total in the accounts

 

deposit the check received and use the theft expense account as the source account for the deposit

 

IF the ipads were already expensed when purchased and are not carried as fixed assets, deposit the insurance check and use "Other Income" as the source account for the deposit

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