Solve qno 13 â ‹Q13 Vikram, a plastic goods trader set fire in the own shop as he - Accountancy - Theory Base of Accounting

Question

Solve qno 13

â€‹Q13 Vikram, a plastic goods trader set fire in
the own shop as he was suffering continuous losses in his business
He taken a fire insurance policy just three months before the fire
broke out He manipulated the accounts and lodged a claim for Rs
1,00,000 He succeeded in getting the full claim from the insurance
company Give necessary journal entries and state which values are
being violated

Neha Arora · Accepted Answer

Dear Student,

The following journal entries will be recorded

Journal

Date
Particulars
L F
Debit
Amount
(Rs)
Credit
Amount
(Rs)

Loss by Fire A/c
Dr

1,00,000

To Purchases A/c

1,00,000

(Loss of goods by fire)

Insurance Company A/c
Dr

1,00,000

To Loss by Fire A/c

1,00,000

(Insurance company admitted full
claim)

Bank A/c
Dr

1,00,000

To Insurance Company A/c

1,00,000

(Receipt of claim by insurance
company)

Values violated:

(a) Disregarding the faith and trust of insurance company
(b) Manipulating the books of accounts

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)

	Loss by Fire A/c	Dr.		1,00,000
	To Purchases A/c				1,00,000
	(Loss of goods by fire)

	Insurance Company A/c	Dr.		1,00,000
	To Loss by Fire A/c				1,00,000
	(Insurance company admitted full claim)

	Bank A/c	Dr.		1,00,000
	To Insurance Company A/c				1,00,000
	(Receipt of claim by insurance company)