Goods destroyed by were uninsured journal entry - Accountancy -

Question

Goods destroyed by were uninsured journal entry?

Monika Sharma · Accepted Answer

When the goods are destroyed by fire following entry should be
made:

Journal

Particulars

L F

Debit Amount

Rs

Credit Amount

Rs

Loss by Fire A/c

Dr

To Purchases A/c

(Goods destroyed by fire)

When goods are not insured then the loss is transferred to
Profit and Loss Account

Journal

Particulars

L F

Debit

Amount

Rs

Credit

Amount

Rs

Profit and Loss A/c

Dr

To Loss by Fire A/c

(Loss transferred to Profit and Loss Account)

Journal
Particulars			L.F.	Debit Amount Rs	Credit Amount Rs
Profit and Loss A/c		Dr.
	To Loss by Fire A/c
(Loss transferred to Profit and Loss Account)