Question

Give the journal for Goods destroyed by fire rs 500.

Answer 1

Loss by fire account....Dr. 500
To purchase account.. 500

Answer 2

Journal for Goods destroyed in fire:

Journal entry of the problem Goods damaged in fire Rs. 500.Journal entry is used for keeping accounts of debit and credited money.

 Loss because of fire is a nominal account hence it will be debited. (Debit all expense/loss and credit all income/gain.)

Goods lost due to fire are not there into the business hence it is credited and it is real account. (Credited money would be debited.)