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Loss oF fire material is Debited To which Account |
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Answer» ong>Answer: The goods destroyed by fire is CONSIDERED to be LOSS for the business and is CLASSIFIED as a nominal ACCOUNT. Therefore, according to the rule of nominal account, all the expenses and losses are to be debited. Hence, "Loss by fire A/c" is debited when goods are destroyed by fire and "purchases A/c" is CREDITED. |
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