Insurance Claim Journal Entry

An asset of Mr. X's was destroyed by fire on 1.08.09. the following particulars are ascertained from the book and records:

- Stock at count as on 31.3.08 rs.18948
- Stock at cost on 31.3.09 rs. 9660
- Purchases during the year rs. 29550
- Sales during the year rs. 47160
- Purchases from 1.04.09 to 1.8.09 rs.38460
- Sales from 1.04.09 to 1.8.09 rs.42360

In valuing the stock as on 31.3.09, goods to the value of rs. 1110 was written off as damaged. But this had been sold during the period of 1.4.09 to 1.08.09, for rs. 660. Apart from this transaction, the rate of gross profit has remained unchanged during the entire period of 1.4.09 to 1.08.09.

(rs. = Rupees = Indian currency)

Journalize the insurance claim.

Click here to post comments

Return to Ask a Question About This Lesson!.

© Copyright 2009-2018 Michael Celender. All Rights Reserved. 
Click here for Privacy Policy.