Insurance settlement

ABGMS
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ABGMS
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Insurance settlement

Seeking help please on how to enter the following insurance refund and the gst implications for BAS

 

$8893.32    Received

 

$9935.00     Market value of asset

$903.18         ITC

$100              Excess

$ 38.50          Unexpired rego

 

2 REPLIES
MYOB Moderator Neil_M
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Neil_M
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Re: Insurance settlement

Hi @ABGMS

 

Welcome to the MYOB Community Forum, I hope you find it a wealth of helpful information.

 

This is probably something best discussed with your accountant, as they will be able to advise you of how the journal entry should look when it is entered. Additionally, they will be able to discuss any GST and BAS implications of this transaction.

 

Some of our amazing MYOB Forum Partners, such as @GDay53 and @ronatbas , may have their own thoughts on how to enter this transaction and its BAS implications.

 

Please do feel free to post any other questions that you may have

 



Kind regards,
Neil
MYOB Client Support
Ultimate Partner Seattle
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Re: Insurance settlement

@ABGMS @Neil_M

 

Agree with Neil that it is best to talk with your Tax Accountant.

 

I would set up an Asset called Insurance Proceeds - 'Name of Asset'.
There would be a difference between the Insurance Proceeds ex GST and the Written Down Value.

Your Accountant would help with the Journal to clear the difference.

 

If there was no Asset eg water damage then you would have a Other Income Account.

 

The GST included in the Insurance Payout would be included in GST Collected on your BAS.

 

Duncan.

Duncan Smith
Business Advice + Tax
www.businessadviceplustax.com.au
Helping business owners build a better business since 1998
E expressgst@optusnet.com.au T 02 9904 3672 7 days
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