Goods purchase from shanker from 10%td and 10%cd 60000 40% amount paid by cheque 10%good lost by fire 80% of raming goods sold to.parvati on 40% prfit on td 10%anf cd .90 % amount recived
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ACCOUNTANCY
Goods destroyed by fire should be credited to ___________.
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When goods are destroyed by fire, then the "Loss by fire A/c" is debited and "Purchases A/c" is credited. The goods destroyed by fire is considered to be loss for the business and is classified as a nominal account. Therefore, according to the rule of nominal account, all the expenses and losses are to be debited. Hence, "Loss by fire A/c" is debited when goods are destroyed by fire and "purchases A/c" is credited.
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