Accounting for Loss by Fire

A/c entries 2070 views 7 replies

Plz tell me the entry for Loss by fire a/c and also tell me

is this entry is correct or not ?

Fire on 29/4/09

A printer has destroyed .

and a new printer has purchased on 31/5//2009

then the entry is

Loss by fire a/c Dr.  

     To  Cash/Bank/ Creditor a/c (New printer purchased)

Plz help me

 

Thank u

Replies (7)

Hi

1.For destroying of printer by fire

    Loss By fire                             Dr.

   Accumulated Depreciation ..Dr

   Bank ( Insurance Claim)       Dr.

        To Printer                                              Cr.

2. For purchasing new printer

     Printer              Dr.

          To  Bank/Cash/Creditor               Cr.

          

I agree with the C.A MANINDER

First entry will be applicable if the Printer is stated at cost, so to reduce the accumulated depreciation

In case of  w.d.v no need for the entry of Accumulated depreciation entry

fine, agree wid mahinder

 agree with maninder..........

sir if there is no depreciation and insurance claim then

the entry as stated in my query is correct or not?

one of my client have done this entry I think this is wrong entry ? and this should be

1. Loss by fire a/c dr

        to Printer (old)

2. printer dr.

      to Cash/ Bank/ Creditor

 

Ya it will be right

ok Thank u


CCI Pro

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