Question

goods costing rs 20000 were destroyed by fire and goods costing rs 10000 were distributed as free samples to all employees what is journal entry

Answer 1

hey there , !

we know that debit all expenses and losses and credit all incomes and gains .

so , here goods of rs20,000 getting destroyed so debit it .
so we will debit loss by fire .

and , rs10,000 is distributed as free that means it is also loss so debit it . so, we will debit the loss by free samples to employee.

Therefore , journal entry will be :-

Loss by fire A/C dr 20000
Free samples A/C dr 10000
To purchase A/C 30000

hope it helps !

be brainly♥
together we go far ! ☺♥

Answer 2

Loss by fire A/C Dr. 20,000

Samples A/C Dr. 10,000

To purchases A/C 30,000