Q. Goods in stock worth ` 800 are destroyed by fire and the Insurance Co. is accepted the claim for ` 600. Adjustment would involve: (Solved)
1. Debit of ` 800 to Trading Account and credit of ` 600 and ` 200 to insurance company and Profit and Loss Account respectively
2. Deduct the ` 800 from closing stock in the Trading Account
3. Credit insurance company for ` 600
4. Debit of ` 600 and ` 200 to insurance company and Profit and Loss Account respectively and
- d. Debit of ` 600 and ` 200 to insurance company and Profit and Loss Account respectively and