Insurance claim for Staff

How should I enter the accounting entries when I receive staff’s medical claim from insurance company? However, this claim is not for me, but for my staff and it is first bank in to my company bank account. Therefore, this amount of cash couldnt considered as my company income right?

Example 1:

Dr. Cash
Cr. Other income

Example 2:

Dr. Cash
Cr. Sundry debtor

Also, my company pay the full amount to the staff and dont keep any cents. So my company only act as a middleperson in receiving the money.

May I know which of the above entries is correct? Please advice, thank you.

Asked on January 6, 2017 2017-01-06 23:23:40 Business (商家)
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1 Answer(s)

Example 2 is more appropriate.

Answered on January 7, 2017. 2017-01-07 06:11:05

Thank you really much for your reply 🙂

on January 7, 2017. 2017-01-07 08:03:02
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