Asset has a value of 1,00,000 which has NRV of 90,000 can u suggest the journal entry if the good is lost by fire for 50,000 out of which 40,000 will be paid by insurance company out of which 30,000 is already paid?
**Debit: Loss by Fire Account** 50,000 **Credit: Asset Account** 10,000 **Credit: Insurance Claim Receivable** 40,000 Explanation: - Debit the Loss by Fire Account for the total loss amount, which is 50,000. - Credit the Asset Account for the carrying amount of the asset, which is 10,000 (1,00,000 - 90,000). - Credit the Insurance Claim Receivable for the expected claim amount, which is 40,000.
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Asset has a value of 1,00,000 which has NRV of 90,000 can u suggest the journal entry if the good is lost by fire for 50,000 out of which 40,000 will be paid by insurance company out of which 30,000 is already paid?
**Debit: Loss by Fire Account** 50,000
**Credit: Asset Account** 10,000
**Credit: Insurance Claim Receivable** 40,000
Explanation:
- Debit the Loss by Fire Account for the total loss amount, which is 50,000.
- Credit the Asset Account for the carrying amount of the asset, which is 10,000 (1,00,000 - 90,000).
- Credit the Insurance Claim Receivable for the expected claim amount, which is 40,000.
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