A company vehicle used by the managing director (MD), Mr. Klopp was involved in a collision along the B1 Highway on the 26th of February 2020. The insurance has indicated that it will pay N$245 000 which amounts to merely 35 percent of the carrying amount of the vehicle. Which entry is correct?

Select one:

a.

Dr. Receivable N$245 000. Cr. Income N$245 000

b.

Dr Bank N$85 750. Cr. Expense N$85 750

c.

Dr. Equity N$85 750. Cr. Liability N$85 750

d.

Dr Bank N$245 000. Cr. Income N$345 000

e.

Dr. Bank N$85 750 Cr. Receivables N$85 750