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goods destoryed by fire


I need the journal entires to be passed when goods are destoryed by fire. Also suggest its accounting treatment in books of accounts.

 
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Rohit is right

But I think

If U received the full claim amount from the insurance company U cant

Debit Goods Lost by Fire to Profit & Loss A/c

Only the excess of goods lost over the insurance claim received u can

debit to profit & loss a/c

 
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Chartered Accountant


Originally posted by : Rohit

Goods Lost on fire a/c - Dr. $x(say)
To, Trading a/c $x
(Transfer Entry)

Insurance claim a/c - Dr. $y
To, Goods Lost on fire a/c $y

Insurance Claim $y goes to asset side of B/S
& Goods Lost on fire also goes to Dr. side of P/L ($x-$y)

 

+ 1

 
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FCA Course co-ordinator WIRC coaching centre

refer www.caclubindia.com/forum/loss-on-theft-79558.asp

 
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good lost by fire Dr (By amt of lost)

to Stock A/c

then

Insurance Co. A/c Dr (Loss accept by insurance co.)

P&L A/c Dr. (amt. not accepted by insurance co.)

To Good lost by fire

 
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TALLY GROUP FOR GOODS LOST BY FIRE

 
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