Question

Goods worth rupees 100000 were destroyed by fire. Insurance company admited and paid claim for 60% . Give journal entry

Answer 1

Answer:

loss by fire a/c. dr. 100000

to purchases a/c. 100000

(by goods destroyed by fire )

insurance a/c. dr 60000

(100000*60%=60000)

to loss by fire a/c 60000

Answer 2

In this question, we are asked to pass the necessary journal entry for the stock destroyed by the fore and some claims given by the insurance company.

Entry will be -

Loss by fire A/C DR 6,000

Insurance Claim A/C DR 4,000

                     To Stock A/C 10,000

( Being stock destroyed by fire and 60% of the claim given by insurance company).

Journal is the method of recording the transaction after that they are posted in the ledger and then they are transferred to trial balance and form that they make a balance sheet.

PROJECT CODE #SPJ3

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