Question

good destroyed by fire rs 25000 insurance claimed rs 19000 goods destroyed will be shown in
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Answer 1

Answer:

ultimate loss ie. 6000 will be shown in profit and loss account

Answer 2

Answer:

It will have 3 entries-

Good destroyed by fire a/c   dr   25000

      to purchase a/c                                  25000

Insurance co. a/c                  dr    19000

Profit and loss                       dr    6000

               to Good destroyed by fire a/c   25000

           

Cash a/c                              dr   19000

         to insurance co. a/c                   19000