Question

inventory lost by fire of cost rupees 350 jounal
entry for this​

Answer 1

Answer:

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.

Step-by-step explanation:

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