Goods in stock worth 800 are destroyed by fire and the Insurance Co. is accepted the claim for 600. Adjustment would involve

Question

Goods in stock worth 800 are destroyed by fire and the Insurance Co. is accepted the claim for  600. Adjustment would involve

Xaibi Aslam · Accepted Answer

Debit of 800 to Trading Account and credit of 600 and 200 to insurance company and

Xaibi Aslam · Answer

Profit and Loss Account respectively

Xaibi Aslam · Answer

Deduct the 800 from closing stock in the Trading Account

Xaibi Aslam · Answer

Credit insurance company for 600

Xaibi Aslam · Answer

Debit of 600 and 200 to insurance company and Profit and Loss Account respectively and

Xaibi Aslam · Answer

credit of 800 to Trading Account

Question #72830