Question

On claim being made for theft of cash, insurance company paid Rs.1500

Answer 1

Answer:

in this there will be 2 journal entries passed .

loss by fire a/c. Dr. 1500

to purchase a/c. 1500

(being goods lost due to theft)

cash a/c. Dr. 1500

to loss by fire a/c. 1500

(being amt received from insurance)

Answer 2

Answer:

Insurance co., a/c Dr

To loss by theft a/c

cash a/c Dr

To Insurance co., a/c