Goods in stock worth ` 800 are destroyed by fire and the Insurance Co. is accepted the claim for ` 600. Adjustment would involve:

Question

TuteeHUB · Accepted Answer

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TuteeHUB · Answer

Debit of ` 800 to Trading Account and credit of ` 600 and ` 200 to insurance company and Profit and Loss Account respectively

TuteeHUB · Answer

Deduct the ` 800 from closing stock in the Trading Account

TuteeHUB · Answer

Credit insurance company for ` 600

TuteeHUB · Answer

Debit of ` 600 and ` 200 to insurance company and Profit and Loss Account respectively and

1.	Goods in stock worth ` 800 are destroyed by fire and the Insurance Co. is accepted the claim for ` 600. Adjustment would involve:
A.	Debit of ` 800 to Trading Account and credit of ` 600 and ` 200 to insurance company and Profit and Loss Account respectively
B.	Deduct the ` 800 from closing stock in the Trading Account
C.	Credit insurance company for ` 600
D.	Debit of ` 600 and ` 200 to insurance company and Profit and Loss Account respectively and
Answer» E.

Discussion