Question

Journalise the transactions :-

Jan. 27 Loss of stock by fire 31,000, insurance company admitted and paid claim for 75%
amount. These goods were purchased on paying CGST and SGST @6% each.

Jan. 29 Goods given away as charity 2500. These goods were purchased on paying CGST
and SGST @6% each

Jan. 30 Goods worth 1,000 used in the construction of building. These goods were
purchased on paying CGST and SGST @6% each.​

Answer 1

Answer:

Journal Entries to be passed when insurance claim is accepted by insurance company on loss of goods by fire :

Loss by fire A/c. Dr.

To trading A/c

(Being purchase account decreased)

Insurance claim A/c. Dr.

To loss by fire A/c

(Being ins. claim lodged and loss by fire account nulified)

Bank A/c. Dr.

P&L A/c Dr.

To insurance claim A/c

(Being claim settled)