Friday, October 20, 2023
Drawings of Goods by the Proprietor
Look at Illustration 5 and see how abnormal loss is treated in the books of account.
Illustration 5
On December 30,1987 the stock worth Rs. 40,000 was destroyed by fire. The stock was insured and the insurance company admitted a claim of Rs. 30,000 only. Pass the necessary Jonal entries and show hoy it will be treated in final accounts.
