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(1)Goods worth 5,000 destroyed by fire.(2)Insurance Company admitted claim for 4,000 only. journal entry ​

Answer»

Answer:GOODS DISTROYED BY FIRE A/c DR. 5000

To. TRADING A/c 5000

P&L A/c Dr. 1000 (5000 - 4000)

To. GOODS DISTROYED BY FIRE A/c 1000 (5000 - 4000)

Amt claimed by insurance co. A/c. Dr. 4000

ASSET (in Balance sheet) 4000

Explanation:



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