MCQ' For Math Class 9; MCQ's For Science Class 9; Class 10. A) From your subject, you could have two types of losses to account for: 1. Business Interruption and 2. Sock of goods destroyed by fire is 13,60,000, Stock of goods salvaged 3,40,000, value of insurance policy 11,90,000, There is an average clause in the policy then the amount of claim is : According to the provisions of Insurance Act, 1938, provision for unexpired risks in case of fire, marine, cargo and miscellaneous business is to be [email protected] 40% of the net premiums received and 100% in case for marine Hull. Should this be posted with insurance costs in overheads, … Accounting treatment in following situation: Year-ending is 31-Dec-20xx. Here is in the video about fire insurance claim in financial accounting had been discussed by Prof. Udayan Kachchhy in this video, we had discussed some important points and solved one problem about how to find out an insurance claim in various situations. Content Banking and Insurance Notes PDF Syllabus ... with so knowing how to go about filing a fire insurance claim the right way right away is essential In the b. Who are preparing for the competitive exams or planning to attend any interview can check the Insurance … Actual cash value of the dwelling up to the Coverage B limit. When insurance claim is partly received: Bank a/c dr Loss on fire a/c dr To Insurance co. 4. Adjustment would involve. If you would like assistance, Karen Prestegord can be reached at Email or 215.441.4600. Can anyone advise on how to handle an insurance claim received in the profit & loss account. The fixed asset must be de-recognized from the statement of financial position and a loss must … Ronald purchased his life insurance policy 5 years ago and committed suicide last month. 2000: Add to Cart: IC-47: Foundation of Casualty Actuarial Science- Part I SmartPractice Mock Tests (550 MCQ) Last updated: June 2020: Rs. Assume that goods lost in fire and and received insurance claim 1. 1. If destruction took place after financial year: Just disclose in directors report as per AS 5 5. This usually happens when net book value of the property (book value minus accumulated depreciation) is more than the amount reimbursed. Accounting MCQ is important for exams like CA, CS, CMA, CPA, CFA, UPSC, NET, Banking and other accounts department exam. GOOD IN TRANSIT BY RAIL/ ROAD 2. 36,000• Stock on 31/12/2000 Rs 66,000• Purchases during the year 2000 RS.4,80,000• Sales during the year 2000 Rs. Though a gain is being recorded, the likely total outcome of an insurance claim is a net loss, since the amount of such a claim is offset against the actual loss incurred, net of an insurance deductible. Proper accounting for disasters and insurance recoveries can be complicated and often requires a detailed analysis of the related accounting standards. • RAW MATERIAL • SEMI FINISHED GOODS • PACKING MATERIALS • ALL THE ABOVE 4. When insurance claim is fully received: Bank a/c dr To Insurance co. 3. Which of the following describes the loss settlement basis for a fire damage claim to a dwelling insured under a DP-3 policy? Check Insurance Awareness General Knowledge Questions from here. Land - include at cost or revalue to value (if known) 2 - Building - the old building would need to be written off in the accounts, with an amount being brought into profit and loss to represent the amount that was going to be recevied from the insurance company. Example: If the property is insured for Rs 20 lakhs under fire insurance and it is damaged by fire to the extent of Rs. Which of the following is not insured under slandered fire and special perils policy? Expenses 1. Dividends on investments iii. Below are steps to claim your fire insurance policy, which are: First things, in case of any unfortunate mishap wherein you need to file a claim inform the insurer at the earliest. Insurance MCQ Questions is important for the preparation of exams like LIC EXAM, IRDA, UIIC, NICL, NIACL, and OICL. ACCOUNTS OF INSURANCE COMPANIES Accounting point of view: Business of Insurance 1.Life Insurance Business 2.General Insurance Business Incomes Major income- Premium Other Sources – i. interest ii. If this is the case record the entries as: Insurance Proceed on damaged property: Debit Loss on Insurance Settlement : Debit Annuities 3. Sometimes the insurance company will pay you less than the amount you paid. ... Class 10 English First Flight book Poem 2 Fire and Ice MCQs. 6,00,000 4. Tips to File Fire Insurance Claim. 3) Contract of Indemnity: Fire insurance is a contract of indemnity and the insurance company is liable only to the extent of actual loss suffered. Complete Accounting Course for Students & Professional; Hindi - 2020-21 Updated: Complete Accounting Course for Students & Professional; Fundamentals of Accounting - Hindi; Departmental Accounts; Fire Insurance Claim – Loss of Stock – Complete Course; Goods in stock worth 800 are destroyed by fire and the Insurance Co. is accepted the claim for 600. Goods in stock worth 800 are destroyed by fire and the Insurance Co. is accepted the claim for 600. ... should not be recognized until any contingencies relating to the insurance claim have been resolved. Insurance MCQ Questions and answers with explanations. Insurance MCQ’s 1. The students will also be able to calculate the amount of claims in case of fire insurance policy and loss of profit policy. If you are not sure about the receipt of claim, simply show that as loss as per AS 9. Audit report for 31-Dec-2013 has been issued with ‘disclaimer opinion’ as loss due to fire has not ascertained till reporting date. a policy or contract of insurance (other than certain warranties – see the box below) that is issued by an insurer, including Page 11. Hi would kindly request someone to detail me the accounting treatment for loss of substantial part or full fixed asset by fire Also kindly let me know the treatment if insurance is claimed not yet received is such insurance claim a contingent Asset Thanks and regards - Accounts A/c entries Filing a claim for fire insurance is simple if approached in the correct direction. CORPORATE ACCOUNTING II MULTIPILE CHOICE QUESTIONS 1) General insurance policies are generally taken for ... Annuity c. Claim d. Policy 30) An annual payment which an insurer guarantees to pay for lump sum money received in the ... Fire insurance b. INSURANCE CLAIMS FOR LOSS OF STOCK AND LOSS OF PROFIT 10.5 3. Rent earned from properties let out etc. When the claim is agreed, set up an accounts receivable due from the insurance company. Reserve for Unexpired Insurance:. Insurance policy. Practice for BBA or MBA exams using these MCQ. Multiple choice Questions on Insurance and Risk Management. Any other proceeds from disposing of the inventory items will also be debited to Cash. Insurance Awareness Multiple Choice Questions for LIC, NIACL and other competitive exams. Accounting for insurance proceeds December 17, 2020 / Steven Bragg. Settlements of claim 2. Insurance claim passed in month of May-2014 & received the money as well. The term fire under the fire policy means ACCIDENTAL IGNITION 3. In dealing with problems requiring determination of the claim the following point must be noted: a. As a CPA having worked with a CPA firm which supported Insurance Adjustors, let me try to be brief about the complex issue of accounting for insurance claim proceeds from a fire loss. Content Loss. Insurance Multiple Choice Questions Flashcards by Jeremy. When the insurance company processed the claim, it was found that Ronald had not fully disclosed information about his health condition in the life insurance proposal form. Check out our new video on the fire insurance claim topic of financial accounting. In each case the accounting for insurance proceeds journal entries show the debit and credit account together with a brief narrative. For a fuller explanation of journal entries, view our examples section. Financial Accounting - II Objectives: The course will enable the students to maintain the accounts of partnership firms, branch accounts, departmental accounts and hire purchase accounts. a. Which of the following are covered in fire insurance? For GST/HST purposes, an “insurance policy” is defined in subsection 123(1) Footnote 1 as:. 3. Sr. No. Accounting MCQ Questions and Solutions with Explanations. CLAIM FOR LOSS OF STOCK Fire insurance being a contract of indemnity, a claim can be lodged only for the actual amount of the loss, not exceeding the insured value. Hello. c. Actual cash value of the dwelling up to the Coverage A limit. Replacement cost up to the Coverage B limit. General Insurance Accounting & Regulation of Investment SmartPractice Mock Tests (1050 MCQ) Last updated: May 2020: Rs. What I would do with the auditors hat on is look at what we had at the year end 1. Insurance claims arise under insurance policies, such as accident and sickness, life or property and casualty policies. • A fire occurred in premises of ABC limited on 15/4/2001 all the stock with salvage value of Rs.13000 were destroyed by fire from the following ascertain the fire Insurance claim.• Stock on 1/1/2000 Rs. Accounting MCQ Questions and answers with easy and logical explanations. Receive the cash from the insurance company. Fire occurred in factory on 11-Dec-2013. Accounting MCQ Accounting 200 Why would a company want to estimate its inventory ? You may also like: How the Accounting Method Changes Affect Your Small Business The money received from an insurance company for a claim involving a loss on inventory stock is debited to Cash. If there is no loss, there is no liability even if there is fire. Insurance Act defines fire insurance as follows: ―Fire insurance business means the business of effecting, otherwise than incidentally to some other class of business, contracts of insurance against loss by or incidental to fire or other occurrence customarily included among the risks insured against in fire insurance policies.‖ Commerce provides you all type of quantitative and competitive aptitude mcq questions with easy and logical explanations. b) There is decrease in goods or stock at cost, so purchase account will be credited.Loss by Fire … Goods lost by fire Rs.8000 a) Goods lost by fire are the loss of business, so loss by fire account will be debited. The accounting for property damage and other losses that an entity has insured itself against any related insurance recoveries. Accounting treatment for lost or stolen tangible fixed assets such as motor vehicles is similar to the accounting for disposal of such assets without any sale proceeds. 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