Question

Goods Destroyed by Fire should be Credited to:

• A. Sales A/c
• B. Loss A/c
• C. Profit & Loss A/c
• D. Purchase A/c

Answer 1

The correct option is D

Purchase A/c

(D) but I don't know how it D can anyone explain me about it that how the ans is D.

The ”Loss by fire A/c” is debited and the ”Purchases A/c” is credited when things are destroyed by fire. The products damaged by fire are categorised as a nominal account and are deemed a loss for the firm. As a result, all expenditures and losses must be deducted according to the nominal account rule. When things are destroyed by fire, ”Loss by fire A/c” is debited, and ”purchases A/c” is credited.