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goods lost by fire rs10000 & insurance claim received for
the same rs8000.what are the effect of this entry in final
accounts?

Answer Posted / mahesh k gopalakrishnan

Goods Lost by Fire a/c Dr. 10,0000
To Trading a/c. 10,0000

P& L a/c Dr. 10,000
To Goods Lost by Fire 10,000

Cash a/c Dr. 8,000
To Insurance Claim a/c 8,000

Insurance Claim a/c Dr. 8,000
To P& L a/c. 8,000

Is This Answer Correct ?    1 Yes 7 No



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