Commerce Exam > Commerce Questions > A diamond ring worth Rs. 1,00,000 was stolen ...
Start Learning for Free
A diamond ring worth Rs. 1,00,000 was stolen from the shop of M/s Shine Jewellers during the accounting year 2011-12. Insurance claim of Rs. 60,000 was admitted by the insurance company but not disbursed up to the end of the accounting year. In this regard no entry was passed in the books of accounts. The correct journal entry for preparing the final accounts for the year ended 31st March 2012, would be:
- a)Profit & Loss A/c Dr. 1,00,000
To Purchases A/c 1,00,000 - b)Insurance claim
receivable A/c Dr. 60,000
Loss by theft A/c Dr. 40,000
To Purchases A/c 1,00,000 - c)Profit & Loss A/c Dr. 40,000
Insurance claim
receivable A/c Dr. 60,000
To Purchase A/c 1,00,000 - d)Insurance claim
receivable A/c Dr. 60,000
Insurance company
A/c Dr. 40,000
To Purchases A/c 1,00,000
Correct answer is 'C'. Can you explain this answer?
| FREE This question is part of | Download PDF Attempt this Test |
Most Upvoted Answer
A diamond ring worth Rs. 1,00,000 was stolen from the shop of M/s Shin...
And Loss A/c Dr. 40,000
To Suspense A/c 40,000
Explanation:
As the insurance claim of Rs. 60,000 was admitted by the insurance company, the loss suffered by M/s Shine Jewellers is only Rs. 40,000 (Rs. 1,00,000 – Rs. 60,000). As no entry was passed in the books of accounts regarding this loss, the amount should be transferred to a Suspense A/c. Therefore, the journal entry would be to debit the Profit and Loss A/c for Rs. 40,000 and credit the Suspense A/c for the same amount.
To Suspense A/c 40,000
Explanation:
As the insurance claim of Rs. 60,000 was admitted by the insurance company, the loss suffered by M/s Shine Jewellers is only Rs. 40,000 (Rs. 1,00,000 – Rs. 60,000). As no entry was passed in the books of accounts regarding this loss, the amount should be transferred to a Suspense A/c. Therefore, the journal entry would be to debit the Profit and Loss A/c for Rs. 40,000 and credit the Suspense A/c for the same amount.
Free Test
FREE
| Start Free Test |
Community Answer
A diamond ring worth Rs. 1,00,000 was stolen from the shop of M/s Shin...
Here insurance company accepted a claim of 60000 it is to b transferred to trading or purchases account.So it is to b debitedAnd the remaining loss should be transferred to p&l account(40000).
Attention Commerce Students!
To make sure you are not studying endlessly, EduRev has designed Commerce study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in Commerce.
|
Explore Courses for Commerce exam
|
|
Similar Commerce Doubts
Top Courses for CommerceView all
A diamond ring worth Rs. 1,00,000 was stolen from the shop of M/s Shine Jewellers during the accounting year 2011-12. Insurance claim of Rs. 60,000 was admitted by the insurance company but not disbursed up to the end of the accounting year. In this regard no entry was passed in the books of accounts. The correct journal entry for preparing the final accounts for the year ended 31stMarch 2012, would be:a)Profit & Loss A/c Dr. 1,00,000To Purchases A/c 1,00,000b)Insurance claimreceivable A/c Dr. 60,000Loss by theft A/c Dr. 40,000To Purchases A/c 1,00,000c)Profit & Loss A/c Dr. 40,000Insurance claimreceivable A/c Dr. 60,000To Purchase A/c 1,00,000d)Insurance claimreceivable A/c Dr. 60,000Insurance companyA/c Dr. 40,000To Purchases A/c 1,00,000Correct answer is 'C'. Can you explain this answer?
Question Description
A diamond ring worth Rs. 1,00,000 was stolen from the shop of M/s Shine Jewellers during the accounting year 2011-12. Insurance claim of Rs. 60,000 was admitted by the insurance company but not disbursed up to the end of the accounting year. In this regard no entry was passed in the books of accounts. The correct journal entry for preparing the final accounts for the year ended 31stMarch 2012, would be:a)Profit & Loss A/c Dr. 1,00,000To Purchases A/c 1,00,000b)Insurance claimreceivable A/c Dr. 60,000Loss by theft A/c Dr. 40,000To Purchases A/c 1,00,000c)Profit & Loss A/c Dr. 40,000Insurance claimreceivable A/c Dr. 60,000To Purchase A/c 1,00,000d)Insurance claimreceivable A/c Dr. 60,000Insurance companyA/c Dr. 40,000To Purchases A/c 1,00,000Correct answer is 'C'. Can you explain this answer? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about A diamond ring worth Rs. 1,00,000 was stolen from the shop of M/s Shine Jewellers during the accounting year 2011-12. Insurance claim of Rs. 60,000 was admitted by the insurance company but not disbursed up to the end of the accounting year. In this regard no entry was passed in the books of accounts. The correct journal entry for preparing the final accounts for the year ended 31stMarch 2012, would be:a)Profit & Loss A/c Dr. 1,00,000To Purchases A/c 1,00,000b)Insurance claimreceivable A/c Dr. 60,000Loss by theft A/c Dr. 40,000To Purchases A/c 1,00,000c)Profit & Loss A/c Dr. 40,000Insurance claimreceivable A/c Dr. 60,000To Purchase A/c 1,00,000d)Insurance claimreceivable A/c Dr. 60,000Insurance companyA/c Dr. 40,000To Purchases A/c 1,00,000Correct answer is 'C'. Can you explain this answer? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A diamond ring worth Rs. 1,00,000 was stolen from the shop of M/s Shine Jewellers during the accounting year 2011-12. Insurance claim of Rs. 60,000 was admitted by the insurance company but not disbursed up to the end of the accounting year. In this regard no entry was passed in the books of accounts. The correct journal entry for preparing the final accounts for the year ended 31stMarch 2012, would be:a)Profit & Loss A/c Dr. 1,00,000To Purchases A/c 1,00,000b)Insurance claimreceivable A/c Dr. 60,000Loss by theft A/c Dr. 40,000To Purchases A/c 1,00,000c)Profit & Loss A/c Dr. 40,000Insurance claimreceivable A/c Dr. 60,000To Purchase A/c 1,00,000d)Insurance claimreceivable A/c Dr. 60,000Insurance companyA/c Dr. 40,000To Purchases A/c 1,00,000Correct answer is 'C'. Can you explain this answer?.
A diamond ring worth Rs. 1,00,000 was stolen from the shop of M/s Shine Jewellers during the accounting year 2011-12. Insurance claim of Rs. 60,000 was admitted by the insurance company but not disbursed up to the end of the accounting year. In this regard no entry was passed in the books of accounts. The correct journal entry for preparing the final accounts for the year ended 31stMarch 2012, would be:a)Profit & Loss A/c Dr. 1,00,000To Purchases A/c 1,00,000b)Insurance claimreceivable A/c Dr. 60,000Loss by theft A/c Dr. 40,000To Purchases A/c 1,00,000c)Profit & Loss A/c Dr. 40,000Insurance claimreceivable A/c Dr. 60,000To Purchase A/c 1,00,000d)Insurance claimreceivable A/c Dr. 60,000Insurance companyA/c Dr. 40,000To Purchases A/c 1,00,000Correct answer is 'C'. Can you explain this answer? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about A diamond ring worth Rs. 1,00,000 was stolen from the shop of M/s Shine Jewellers during the accounting year 2011-12. Insurance claim of Rs. 60,000 was admitted by the insurance company but not disbursed up to the end of the accounting year. In this regard no entry was passed in the books of accounts. The correct journal entry for preparing the final accounts for the year ended 31stMarch 2012, would be:a)Profit & Loss A/c Dr. 1,00,000To Purchases A/c 1,00,000b)Insurance claimreceivable A/c Dr. 60,000Loss by theft A/c Dr. 40,000To Purchases A/c 1,00,000c)Profit & Loss A/c Dr. 40,000Insurance claimreceivable A/c Dr. 60,000To Purchase A/c 1,00,000d)Insurance claimreceivable A/c Dr. 60,000Insurance companyA/c Dr. 40,000To Purchases A/c 1,00,000Correct answer is 'C'. Can you explain this answer? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A diamond ring worth Rs. 1,00,000 was stolen from the shop of M/s Shine Jewellers during the accounting year 2011-12. Insurance claim of Rs. 60,000 was admitted by the insurance company but not disbursed up to the end of the accounting year. In this regard no entry was passed in the books of accounts. The correct journal entry for preparing the final accounts for the year ended 31stMarch 2012, would be:a)Profit & Loss A/c Dr. 1,00,000To Purchases A/c 1,00,000b)Insurance claimreceivable A/c Dr. 60,000Loss by theft A/c Dr. 40,000To Purchases A/c 1,00,000c)Profit & Loss A/c Dr. 40,000Insurance claimreceivable A/c Dr. 60,000To Purchase A/c 1,00,000d)Insurance claimreceivable A/c Dr. 60,000Insurance companyA/c Dr. 40,000To Purchases A/c 1,00,000Correct answer is 'C'. Can you explain this answer?.
Solutions for A diamond ring worth Rs. 1,00,000 was stolen from the shop of M/s Shine Jewellers during the accounting year 2011-12. Insurance claim of Rs. 60,000 was admitted by the insurance company but not disbursed up to the end of the accounting year. In this regard no entry was passed in the books of accounts. The correct journal entry for preparing the final accounts for the year ended 31stMarch 2012, would be:a)Profit & Loss A/c Dr. 1,00,000To Purchases A/c 1,00,000b)Insurance claimreceivable A/c Dr. 60,000Loss by theft A/c Dr. 40,000To Purchases A/c 1,00,000c)Profit & Loss A/c Dr. 40,000Insurance claimreceivable A/c Dr. 60,000To Purchase A/c 1,00,000d)Insurance claimreceivable A/c Dr. 60,000Insurance companyA/c Dr. 40,000To Purchases A/c 1,00,000Correct answer is 'C'. Can you explain this answer? in English & in Hindi are available as part of our courses for Commerce.
Download more important topics, notes, lectures and mock test series for Commerce Exam by signing up for free.
Here you can find the meaning of A diamond ring worth Rs. 1,00,000 was stolen from the shop of M/s Shine Jewellers during the accounting year 2011-12. Insurance claim of Rs. 60,000 was admitted by the insurance company but not disbursed up to the end of the accounting year. In this regard no entry was passed in the books of accounts. The correct journal entry for preparing the final accounts for the year ended 31stMarch 2012, would be:a)Profit & Loss A/c Dr. 1,00,000To Purchases A/c 1,00,000b)Insurance claimreceivable A/c Dr. 60,000Loss by theft A/c Dr. 40,000To Purchases A/c 1,00,000c)Profit & Loss A/c Dr. 40,000Insurance claimreceivable A/c Dr. 60,000To Purchase A/c 1,00,000d)Insurance claimreceivable A/c Dr. 60,000Insurance companyA/c Dr. 40,000To Purchases A/c 1,00,000Correct answer is 'C'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
A diamond ring worth Rs. 1,00,000 was stolen from the shop of M/s Shine Jewellers during the accounting year 2011-12. Insurance claim of Rs. 60,000 was admitted by the insurance company but not disbursed up to the end of the accounting year. In this regard no entry was passed in the books of accounts. The correct journal entry for preparing the final accounts for the year ended 31stMarch 2012, would be:a)Profit & Loss A/c Dr. 1,00,000To Purchases A/c 1,00,000b)Insurance claimreceivable A/c Dr. 60,000Loss by theft A/c Dr. 40,000To Purchases A/c 1,00,000c)Profit & Loss A/c Dr. 40,000Insurance claimreceivable A/c Dr. 60,000To Purchase A/c 1,00,000d)Insurance claimreceivable A/c Dr. 60,000Insurance companyA/c Dr. 40,000To Purchases A/c 1,00,000Correct answer is 'C'. Can you explain this answer?, a detailed solution for A diamond ring worth Rs. 1,00,000 was stolen from the shop of M/s Shine Jewellers during the accounting year 2011-12. Insurance claim of Rs. 60,000 was admitted by the insurance company but not disbursed up to the end of the accounting year. In this regard no entry was passed in the books of accounts. The correct journal entry for preparing the final accounts for the year ended 31stMarch 2012, would be:a)Profit & Loss A/c Dr. 1,00,000To Purchases A/c 1,00,000b)Insurance claimreceivable A/c Dr. 60,000Loss by theft A/c Dr. 40,000To Purchases A/c 1,00,000c)Profit & Loss A/c Dr. 40,000Insurance claimreceivable A/c Dr. 60,000To Purchase A/c 1,00,000d)Insurance claimreceivable A/c Dr. 60,000Insurance companyA/c Dr. 40,000To Purchases A/c 1,00,000Correct answer is 'C'. Can you explain this answer? has been provided alongside types of A diamond ring worth Rs. 1,00,000 was stolen from the shop of M/s Shine Jewellers during the accounting year 2011-12. Insurance claim of Rs. 60,000 was admitted by the insurance company but not disbursed up to the end of the accounting year. In this regard no entry was passed in the books of accounts. The correct journal entry for preparing the final accounts for the year ended 31stMarch 2012, would be:a)Profit & Loss A/c Dr. 1,00,000To Purchases A/c 1,00,000b)Insurance claimreceivable A/c Dr. 60,000Loss by theft A/c Dr. 40,000To Purchases A/c 1,00,000c)Profit & Loss A/c Dr. 40,000Insurance claimreceivable A/c Dr. 60,000To Purchase A/c 1,00,000d)Insurance claimreceivable A/c Dr. 60,000Insurance companyA/c Dr. 40,000To Purchases A/c 1,00,000Correct answer is 'C'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice A diamond ring worth Rs. 1,00,000 was stolen from the shop of M/s Shine Jewellers during the accounting year 2011-12. Insurance claim of Rs. 60,000 was admitted by the insurance company but not disbursed up to the end of the accounting year. In this regard no entry was passed in the books of accounts. The correct journal entry for preparing the final accounts for the year ended 31stMarch 2012, would be:a)Profit & Loss A/c Dr. 1,00,000To Purchases A/c 1,00,000b)Insurance claimreceivable A/c Dr. 60,000Loss by theft A/c Dr. 40,000To Purchases A/c 1,00,000c)Profit & Loss A/c Dr. 40,000Insurance claimreceivable A/c Dr. 60,000To Purchase A/c 1,00,000d)Insurance claimreceivable A/c Dr. 60,000Insurance companyA/c Dr. 40,000To Purchases A/c 1,00,000Correct answer is 'C'. Can you explain this answer? tests, examples and also practice Commerce tests.
|
|
Explore Courses for Commerce exam
|
|
Suggested Free Tests
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup