Treatment of goods lost by fire etc. and insurance claim thereof :--
Goods worth Rs. 10,000 lost by fire. Insurance claim is yet to be received for Rs. 6000.
The journal entry for goods destroyed by rain, with an insurance claim of 90,000 admitted by the insurance company, would involve recognizing the loss of the inventory and the insurance receivable. The entry would be: Debit "Loss from Inventory Write-off" for 90,000. Credit "Inventory" for 90,000. Debit "Insurance Receivable" for 90,000 when the claim is recognized. Credit "Insurance Income" for 90,000 once the claim is received. This reflects the loss of goods and the expected recovery from the insurance claim.
fIRST THE GODOWN KEEPER HAS TO DISCHARGE HIS LIABILITY AS BAILEE THEN THE INSURANCE CLAIM CAN BE PAID
if you have an unisured loss - document and determine if it would be worthwhile to claim as a loss on your federal tax return
Dr Cr By: Loss by fire A/c 2000 By: Insurance Co A/c 10000 To: Goods destroyed by fir A/c 12000
what are goods inwards? what are goods inwards?
The journal entry is the accounting entry which lists the goods that are bought on credit.
Cost of goods sold.
answer is not satisfactory
inventory
Jean Petre has written: 'The treatment in the national accounts of goods and services for individual consumption produced, distributed, or paid for by government' -- subject(s): Accounting, National income
Debit an account that has received goods or money; and credit account that has given goods
business is receiving goods as samples it may sell or distribute for advertisement