Question

Loss of goods by fire should be credited to
a.       Sales a/c
b.      Loss a/c
c.       Profit and loss a/c
d.      Purchases a/c​

Answer 1

Answer:

b. Loss a/c

Explanation:

the good destroy by fire is considered to be loss for the business

Answer 2

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.

Explanation:

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