Question

journal entry on due to fire in the Godown goods of rupees 1200 was damage for which the insurance company accepted the claim of rupees 600 and damaged goods were sold for rupees 300​

Answer 1

Answer:

Explanation:

Assuming that the value of goods lost by fire is Rs. 1,00,000. Insurance company paid a claim of Rs.60, 000.

 

Entries will be passed as follows:

 

Abnormal Loss A/c.   Dr.   1,00,000

    To Trading A/c                     1,00,000

 

Insurance Company A/c. Dr.  1,00,000

    To Abnormal Loss A/c.          1,00,000

 

Bank A/c.                        Dr. 60,000

Profit and Loss A/c       Dr. 40,000

    To Insurance Company A/c.     1,00,000