Question

Fire is a asset or liability

Answer 1

Answer

Definition

It is a Chemical Reaction of Oxidation which gives heat and light

Identification (Whether it is an asset or liability)

Fire is neither an asset nor a liability it only gives loss to the business

For Example

Goods Costing 30,000 destroyed by fire

The simple Journal Entry is

Loss By Fire A/c         Dr        ₹ 30,000

          To Purchase A/c                        ₹ 30,000

(Being Goods Costing 30,000 lost by fire )

From these example we came to know that Fire is only a destruction for business neither an asset nor an liability.