If there is the factory and there is the fire in that factory and the machine was rendered un-useable and then we sold the machine for scrap, 100,000 was the original value and 50,000 was the written down value showing on the books and the scrap value is 10,000 and from insurance company we were able to recover 30,000, and we purchase another machine to replace the machine for 100,000. How to record the transaction?

Note: This is assuming all transactions are in the same period. If Fire is in Year 1 and Recovery is in Year 2, impairment will be done in Year 1

For the sale of scrap and receivable from Insurance company the entry is
Bank a/c Dr 10,000
Insurance Receivable/ Bank a/c Dr 30,000
Loss on damage of PPE a/c Dr 10,000
To PPE a/c Cr 50,000
(Being PPE damaged by fire sold as scrap and part of the value is received/ receivable from the Insurance company.)
2. PPE a/c Dr 1,00,000
To bank a/c Cr 1,00,000
(Being new PPE purchased)