goods destoryed by fire

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

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

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

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

TALLY GROUP FOR GOODS LOST BY FIRE