Question

Goods costing Rs.50,000 were stolen. Insurance company accepted a claim of Rs.40,000. The appropriate journal entry is ___ a) Loss by theft a/c Dr. 50,000 To Sales a/c 50,000 b) Outstanding insurance claim a/c Dr. 40,000 Profit & Loss a/c Dr. 10,000 To Purchases a/c 50,000 c) Loss by theft a/c Dr. 40,000 To Purchases a/c 40,000 d) Profit & Loss a/c Dr. 10,000 To Purchases a/c 10,000

Answer 1

Answer

I think option (c)....