Since u have not provided what is the wrong entry?
anyhow, it could be anything like e.g
(for cheque recieved from fala fala insurance co. etc. etc.). just joking!
Lets suppose the wrong entry was as gieven by Mohit Mohan hu! Kyu Mohit u r challenging? While the entry passed when fire took place was as follows;
Dr.- Insurance Claim Recievable a/c by Rs.5,000/-
Cr.- Stock (Name the goods or type of stock) (under the group of Stock in Trade) by Rs. 5000/- (it is presumed settlement amount and loss is same)
[narration - Being loss of stock due to fire is being claimed from the insurance Co.]
Note- along with crediting the stock a/c, the respective stock register is also adjusted i.e. quantity is reduced from the stock in trade and hence the stock in trade will be reduced by the same amount of Rs.5000/-
Now the wrong entry has already been passed by the Mohit Mohan by way of crediting TRADING ACCOUNT (thats too in capital letter, Hu!)
Rectification entry is;
Dr.- Trading Account by Rs.5,000/-
Cr.- Insurance Claim Recievable a/c by Rs.5,000/-
If i am right/ wrong please tell me. Mohit is also expected to see it. I am not challenging anyone at all. it may not be coreect but it seems to me logical and i tried to reflect the ultimate effect. the main issue is with the entry passed when fire took place and not the wrong entry and rectification entry. Thanks