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