1.

Is of Stock by Theft or Fire or Damage:Goods worth Rs. 1,00,000 were destroyed by fire, Insurance company admitted and60% amount.​

Answer»

ANSWER:>The first entry is,

GOODS DESTROYED BY FIRE A/c DR. 100,000/-

To. TRADING A/c Cr. 100,000/-

> The second entry is,

PROFIT & LOSS A/c Dr. 40,000/-

To. GOODS DESTROYED BY FIRE A/c Cr. 40,000/-

(100,000 * 60%) or (100,000 * 60/100)

>The 3rd entry is,

ASSETS Dr. 60,000/- (in balancesheet)

To. GOODS DESTROYED BY FIRE A/c Cr. 60,000/-

Explanation:



Discussion

No Comment Found

Related InterviewSolutions