Accounting entries for finished goods destroyed by fire

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Kartikeya Goyal (Querist)
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04 October 2012 Hi,

Can anyone suggest the accounting entries for Finished Goods Destroyed by Fire during the year in the following example

- Value of FG Destroyed: 16 Lacs;
- Salvage Value : 2 Lacs;
- Insurance Claim Accepted & Receivable - 8 Lacs

CA Pooja Agarwal

CA Pooja Agarwal (Expert)
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04 October 2012 1. goods destroyed by fire/abnormal loss debit 14 l
purchase A/c cdredit 14l

2. p/l a/c debit 6l
insurance claim receivablr debit 8l
abnormal loss credit 14l

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