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sir, some body tell me how i treat the abnormal fire loss
stock :-our company suffer a fire loss during goods in
transit (goods were hold at warehouse and fire occured)
now how i account for the loss and what type of ledger
should i create and under which group
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Answer / basanti
if goods were not insured than journal will be
loss by fire a/c.....dr
to trading a/c.....cr
which means it will be treated in credit side if trading
a/c & shown in debit side of P&L a/c.
if goods are insured than the claim amount is adjusted in
asset side of balance side.
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