Question

what is the journal about
good lost by fire 20000 and the insurance company claim only 30%​

Answer 1

Answer:Journal entry would be-

              1. Good lost by fire of 20000

                  Loss of stock by fire A/C      ....Dr.  20000

                                To Purchases  A/C                 20000

              2. Insurance company claim 30% i.e.  

                        Insurance CO. A/C   ....Dr.   6000

                            To Loss of stock by fire A/C   6000

Explanation: