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AS 9
Accountancy
A claim lodged with the railways in March 20X1 for loss of goods â?¹2,00,000 had been passed for payment in March 20X3 for â?¹1,50,000. No entry was passed in the books of the Company, when the claim was lodged.Advise P Co. Ltd about the treatment of the following in the financial statement of Accounts for the year ended 31st March 20X3. Can someone explain the answer in simple termsâ?¦
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Best Answer
You need to check when is the claim receivable. Lodging of claim is just a application. The company may or may not get the claim passed. Hence we need to check the date of approval. Since the approval was obtained in March X3, it will be recorded in March X3.
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