Nov. 1 Goods destroyed by accident Rs. 25,000. Nov. 5 Goods destroyed by flood Rs. 45,000. Insurance company admitted the claim for Rs. 36,000. Nov. 12 Goods destroyed in transit Rs. 40,000. Insurance company paid the claim. Nov. 20 Goods destroyed by rain Rs. 25,800. Insurance company paid the claim Rs. 18,800. Nov. 22 Goods destroyed due to war Rs. 40,000 Nov. 25 Insurance company admitted the claim for above goods Rs. 34,000. Nov. 30 Insurance company paid the above claim Plz create journal?

Question

Answer

Journal Entry for Goods Destroyed and Insured Claims

The journal entry for goods destroyed and insured claims includes recording the loss of goods and the corresponding insurance claims, as well as any payments received or made by the insurance company. The following are the details of the transactions:

1. Goods destroyed by accident Rs. 25,000
- Debit: Loss by accident account Rs. 25,000
- Credit: Stock account Rs. 25,000

2. Goods destroyed by flood Rs. 45,000
- Debit: Loss by flood account Rs. 45,000
- Credit: Stock account Rs. 45,000

3. Insurance company admitted the claim for Rs. 36,000
- Debit: Bank account Rs. 36,000
- Credit: Insurance claim received account Rs. 36,000

4. Goods destroyed in transit Rs. 40,000
- Debit: Loss by transit account Rs. 40,000
- Credit: Stock account Rs. 40,000

5. Insurance company paid the claim
- Debit: Bank account Rs. 40,000
- Credit: Insurance claim paid account Rs. 40,000

6. Goods destroyed by rain Rs. 25,800
- Debit: Loss by rain account Rs. 25,800
- Credit: Stock account Rs. 25,800

7. Insurance company paid the claim Rs. 18,800
- Debit: Bank account Rs. 18,800
- Credit: Insurance claim paid account Rs. 18,800

8. Goods destroyed due to war Rs. 40,000
- Debit: Loss by war account Rs. 40,000
- Credit: Stock account Rs. 40,000

9. Insurance company admitted the claim for above goods Rs. 34,000
- Debit: Bank account Rs. 34,000
- Credit: Insurance claim received account Rs. 34,000

10. Insurance company paid the above claim
- Debit: Insurance claim paid account Rs. 34,000
- Credit: Bank account Rs. 34,000

Explanation:
The above journal entry shows the loss of goods due to various reasons and the corresponding insurance claims received and paid. In the case of the loss of goods, the loss account is debited, and the stock account is credited. When the insurance company admits the claim, the bank account is debited, and the insurance claim received account is credited. When the insurance company pays the claim, the insurance claim paid account is debited, and the bank account is credited. The journal entry helps in maintaining accurate records of the loss of goods and the corresponding insurance claims, which is essential for financial reporting and decision making.

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