Question

4. Goods burnt by fire for Rs. 875 and Insurance Company accepted a claim of Rs. 1000 ​

Answer 1

Explanation:

During the year goods destroyed by fire was Rs. 10,000. This insurance company accepted the claim for Rs. 6,000 and paid the money after the close of financial year. In relation to this which of the following statement is correct?

Trading account credited by 10000 P&L account debited by RS. 4000 in bal insurance claim will be shown @ RS. 6000