Goods were lost by fire 80000 plus and these were purchased plus igst 12% Insurance claim admitted 85000 - Accountancy -

Question

Goods were lost by fire 80000 plus and these were purchased plus
igst 12% Insurance claim admitted 85000 Show their treatment in
final accounts

Komal Rani · Answer

Dear Student

JOURNAL

Particulars

L
F

Debit

Credit

Loss by fire
A/c

Dr

89,600

To
Purchases A/c

80,000

To
IGST input A/c

9600

Accrued Insurance Claim
A/c

85,000

To
Insurance Claim A/c

85,000

Loss by fire
A/c

Expense

Accrued
Insurance Claim A/c

Asset

Insurance Claim
A/c

Revenue

Purchases will be reduced by 80000 and IGST input will be reduced
by 9600

I hope it helps

Regards

Goods were lost by fire 80000 plus and these were purchased plus igst 12% . Insurance claim admitted 85000 . Show their treatment in final accounts