Question

Goods costing Rs.10,000 destroyed by fire should be credited to

• A. Purchase Account
• B. Sales Account
• C. Cash Account
• D. Goods Lost by Fire A/c

Answer 1

Answer: (A)

Purchase Account

Journal Entry :

Loss by Fire A/c Dr. 10000

To Purchase A/c 10000

( Being goods destroyed by fire)

Loss by Fire A/c is to be credited in Purchase A/c.