Interested to Buy Any Domain ? << Click Here >> for more details...
accounting effect for closing stock goods destroyed by fire
and claim is given by insurance co
- 3 Answers
- 13438 Views
- Forbes, I also Faced
- E-Mail Answers
Answers were Sorted based on User's Feedback
Answer / mathew
The answer is as follows :
Abnormal loss ...............Dr
To Trading a/c
Cash a/c..............Dr
To Insurance Co
(assuming that the Insurance co has accepted the claim of the firm and has fully remitted the value of stock destroyed, since the question states the claim has been given by the Insurance co)
| Is This Answer Correct ? | 0 Yes | 0 No |
Answer / shameemudheen
DR Inventory loss by Fire - Expenses
CR Inventory - Asset
(Inventory loss noted due to fire)
DR Cash - Asset
CR Insurance company - Assets
(Claim amount received from insurance company)
| Is This Answer Correct ? | 0 Yes | 0 No |
Answer / alok
In this question it is not clear whether the co. gets the
claim or not. it only says that claim is given.
since no claim money is received yet, it should be under
conservative convention treated as loss and respective entry
needs to made. i.e.
Loss by fine a/c Dr
to purchase
and loss by fire account should be Debited in Trading Account.
If the question gives a clue that claim money is received
then it should be treated as
Bank account Dr
Loss by fir a/c Dr (uncovered part)
to purchase
(appropriate narration should be made here)
| Is This Answer Correct ? | 1 Yes | 7 No |
Explain how the following transactions would be recorded in a cash book with Cash and Bank columns? i) Deposit of cash into Bank ii) Withdrawal of money from Bank for office use iii) Deposit of cheques (received from others) into Bank iv) Dishonour of cheques deposited into Bank I need a detailed answer..thanks..
3 Answers ABC, Aroma, College School Exams Tests, IDA, Ignou,
who is debtor and creditor?
On January 20x2, the balances of ABC Ltd's provision of doubtful debt account was $1510. During the year, a total of 3750 of account recievable was written of as bad debts. The balance in the provision for doubtful debts account at 31st Dec was 1450. What is the total amount of bad debt recognised this year?
How to maintain the reserve a/c inspite of the withdrawls in a propreitorship and ways to reduce the gap of excess current assets to the less current liabilities.
vijay sir, Pls, tell me what's the difference of school fees and tution's fees.pls. explain briefly.
hi, M a fresher who started work in an event management firm as an accountant recently, and i don't know the head o tail of what to be done., worse part is its a small firm, and i have to learn everything on my own,:( so if anyone could guide me pllleeeeeesssssssseeeeeeee help... its really very urgent.. I'd be very grateful...
What software applications have your used for accounts receivable?
Can it be possible to transfer FCRA funds to an ngo who don't have FCRA registration no.
What are non performing assets in banking?
2 Answers Jammu and Kashmir Bank,
What do you mean by ledger posting?
which form is used for central sales tax outside purchase and sales and vat
What is the Difference Between (A/c Payable / Receivable ) AND ( Bills payable / Receivable )................?
Audit 
