Treatment of Insurance Claim on goods lost by theft?

The total amount of loss will be credited to income statement, and claim received should be shown as asset, and difference between these two treated as expenses in income statement.

a) fully covered and claim received full: Bank A/c Dr To Trading a/c ( Claim by theft) b) fully covered but Insurance company accepts only (%) as claim: Bank a/c. . Dr. (%) Loss by theft (P&L) Dr. (%) To Insurance claim (Trading a/c) ()

At the time to apply claim on goods lost by theft. 

Receivable: Insurance Claim on Goods Theft. (Debit)

Inventoary lost by Theft. (Credit)

------------------------------------------

At the time to got the claim cheque.

Bank (Debit)

Receivable: Insurance Claim On Goods Theft (Credit)

After adjustment of lost Inventory, insurance claim entry will be recorded as below

Insurance Claim DR

Other Income CR

One received the claim:

Bank DR

Insurance Claim SR

Regarding the following insurance policies from underwriting point of view , the insurance company is obliged to pay the insured all claims or losses occurred due to theft , after deduction of the policy excess from the total amount of claim :-

1/ Marine cargo insurance policy .

2/ fire & burglary insurance policy .

3/ Burglary insurance policy 

4/ Motor vehicles insurance policy .

Besides all other types of insurance policies that may be extended to cover theft perils.

Thank you for your good quiry and question.

Best wishes .