Solve please.......!!

Originally posted by : Priya
	debit the increase in asset, increase in expense purchase to cash/creditor 10 lakh loss by fire 2lakh loss by theft 4lakh to purchase 6lakh if any amount is later recovered credit the loss account with that amount

Sorry Priya.....I am not understand......

please clarify to best.....of understand........!!

We have left 4 lac of Purchases .....where it shown......!!

I think...

for first line (If Goods Purchased Rs. 10,00,000) entry will be...

• Purchase A/C      Dr       10,00,000
•       To Creditor/CashA/c                      10,00,000

for second...

• loss by fire A/c Dr      200000
•        To PurchaseA/c                 200000

For third

•  loss by theft A/c Dr   400000
•         To PurchaseA/c                400000

Here, purchase is of 10,00,000. It is deducted by loss (200000+400000). The remainning 400000 is within the stock.

In Purchase ledger Account...

To Cash/Creditor       10,00,000                                      By loss fire & theft     600000

                                                                                        By Balance c/d           400000

                                  10,00,000                                                                    10,00,000