Question

Q5. Give journal entries for the following transactions
a) Goods worth Rs 10000 were destroyed by fire, Insurance company admitted claim
for 60% amount.
b) Rawat who owed me Rs 20000 became insolvent and failed to pay the amount.
He paid me a composition of 40 paise in a rupee.
c) Paid by cheque Rs 6000 as fire insurance premium for a period of 12 months
starting from 1st August 2018. Financial year closes 31 March every year.
d) Received commission Rs 6000 out of which one fourth relates to next year.
e) Paid landlord Rs 21000 for rent. 1/3rd of Building occupied by the proprietor for
residential use.
f) Cash received from Mohan Rs 350 for bad debts written off last year
E​

Answer 1

Answer:

When goods lost are not insured - If the destroyed goods are not insured, then there is no need of passing any journal entry. This is because in joint venture, we debit all the good purchased by the joint venture. The total good purchased includes the goods that destroyed by fire.

When goods lost are insured - In this case, joint venture can file a claim with insurance company, we may or may not receive the claim, the amount of claim received will be shown in the credit side of joint venture a/c.