Accountancy, asked by palaktyagi333, 1 year ago

goods of Rupees 6000 were destroyed by fire and were not insured
journalise the statement.

Answers

Answered by mishravansh05214

As the goods have not been insured and in case of loss by fire means decrease in the stock of purchase. so entry would be like:

Loss by fire A/c. Dr.

To purchase A/c

(Being goods lost by fire )

palaktyagi333: but why purchase a/c sir

mishravansh05214: coz,Cash is credited because cash is an asset account that decreased because cash was used to pay the bill. You would debit inventory because it is an asset account that increases in this transaction and accounts payable is credited to a liability account that increases because the inventory waspurchased on credit.

mishravansh05214: if you still don't understand, ask me again I'll definitely help you.

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goods of Rupees 6000 were destroyed by fire and were not insured journalise the statement. ​

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goods of Rupees 6000 were destroyed by fire and were not insured
journalise the statement.