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NNG Enterprises
Level 1

Should I record the insurance claim check as current asset?

I received a check from insurance company for the claim filed. How do i record that
Solved
Best answer November 03, 2020

Best Answers
Rustler
Level 15

Should I record the insurance claim check as current asset?

deposit the check and use either the expense account for the damages or Other Income as the source account for the deposit

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3 Comments 3
Rustler
Level 15

Should I record the insurance claim check as current asset?

deposit the check and use either the expense account for the damages or Other Income as the source account for the deposit

kjst1
Level 1

Should I record the insurance claim check as current asset?

If the repairs have not been completed for an insurance settlement should I record a liability to offset the income?

Rainflurry
Level 13

Should I record the insurance claim check as current asset?

@kjst1 

 

The settlement should be recorded to an other income account called 'Gain from insurance proceeds' at the time of receipt, even if repairs have not been completed.  That income will be offset with expenses when the repairs are made.  

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