If extraordinary loss is on a/c of furniture & fixtures, then instead of crediting purchases, furniture & fixtures should be credited.
loss by theft A/c to purchases
Debit loss accountCredit cash / bank
debit loss by firecredit purchases
it s transfer to profit and loss account.
debit loss by firecredit goods inventory
loss by theft A/c to purchases
Debit loss accountCredit cash / bank
Debit cash / bankdebit loss on saleCredit fixed asset
debit loss by firecredit purchases
it s transfer to profit and loss account.
debit loss by firecredit goods inventory
[Debit] Loss on sale of equipment xxxx [Credit] Asset account xxxx
Reserves always created from profit. Therefore the Journal entry will be for creating reserves Dr Profit & Loss A/c CR Reserve A/c
debit loss of assetcredit fixed asset
Debit profit and loss accountCredit owners capital
Compound journal entry is that entry which records more than one business transaction in one single journal entry.
Abnormal loss of goods a/c dr. To purchases a/c