Multiple choice

Loss of goods worth Rs. 5,000 due to fire was recorded in the book. Claim is made to Insurance company and is recorded in the book with full amount. Insurance company paid the 80% amount. What is the entry for remaining 20% amount?

  1. Dr. loss by fire a/c & Cr. insurance claim a/c

  2. Dr. purchase & Cr. loss by fire a/c

  3. Dr. profit & loss a/c & Cr. insurance claim a/c

  4. Dr. cash a/c & Cr. loss by fire a/c
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

 20% amount is loss & transfer to profit & loss a/c.

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