Question

an employee steals away goods worth 1,000 and cash 500 and is now absconding​

Answer 1

A journal entry is a record of the transaction of a business in the firm's accounting books.

• The correct journal entries will be -

Goods lost by theft A/c Dr 1000

To purchase A/c 1000

( Being the goods stolen)

Insurance company A/c Dr 1000

To goods lost by theft A/c 1000

( Being the sum insured)

Bank A/c Dr 500

Statement of P/L Dr 500

To insurance company A/c 1000

( Being the amount of claim accepted by the Insurance company)

Answer 2

Answer:

loss by theft. Dr. 1500

To cash A/C. 500

To purchases A/c 1000

( being goods and cash stolen by employee)