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What will be the entry in book, stock get destroyed in fire
of Rs. 1,00,000/- in two circumstances
i) Stock is insured.
ii) and stock is un-insured.

Answer Posted / srinivas

When Stock is insured

Insurence a/c dr ( with amount insurence received)
P & L A/c Dr ( with amount of loss)

To Trading Account (Total Loss amount)

When Stock is not insured

P & L a/c dr
To Trading a/c

Is This Answer Correct ?    5 Yes 4 No



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