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

Question

Quizplus · Accepted Answer

The Answer of 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

Goods in Stock Worth ` 800 Are Destroyed by Fire