Question

Pass the necessary Journal entries in the books of Krishna for the following transactions:
April 5 Goods lost by fire of Rs 50,000
April 7 Claim filed with the Insurance Company.
April 13 Insurance company accepted 70% claim only.
April 20 Claim amount received​

Answer 1

Answer:

Apr.5 loss by fire account. dr 50000

To Purchase account. 50000

Aor.7 Insurance company dr 50000

To loss by fire. 50000

Aor.20 Bank account. dr. 35000

Profit &loss a/c. dr 15000

To insurance company. 50000