Stolen item - how to account for it

Accounting
1

Need some help here:

We hired an electric bike which was subsequently stolen & not covered by insurance. So we have to pay the bike shop £5,000!

Is this processed in the accounts as an expense, just as any other expense would be?

TIA Dave

2

Hi @dmarti32

I would assume this would be the case, you may need to check with your accountant if there is another way you should account for it

1 Like
3

Hi,

if the bike wasn’t leased but simply hired for a short while, then I’d expense the 5,000.

You could debit code 7700 Equipment Hire with 5,000

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And credit the bank account with 5,000 when you make the payment.

Hope this helps :slight_smile:

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4

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