Question

Answer in one sentence only.
Which account is debited, when goods are destroyed by fire?

Answer 1

In the transaction, " Goods destroyed by fire" two accounts are affected viz. nominal A/c i.e., loss by fire and real account i.e., purchase.

As per the golden rule of accounting for nominal A/c - Dr. all expenses and losses and Cr. all incomes and gains and for real A/c - Dr. what comes in and Cr. what goes out,

Hence,

Loss by fire A/c will be debited for the given transaction.