Question

insurance company paid claim 4000​

Answer 1

Answer:

goods worth 5000 destroyed by fire and insurance company admitted claim for 4000 only.

Loss by fire is a loss and nomianal a/c so DEBITED

Insurance claim receivable is asset so DEBITED

Goods destroyed by fire is credited because the goods which we bought for sale were included in purchases and no more benifit can be achieved from that destroyed goods and moreover the goods are gone out of business so CREDITED