Page 37 - IC26 LIFE INSURANCE FINANCE

(viii) For abnormal loss of stock by accident or fire:

(a) For goods being lost :

Loss by fire A/c Dr

To Purchases A/c

(b) For insurance company, admitting the claim:

Insurance Co. A/c Dr. (with the amount of claim)

Profit & Loss A/c Dr. (with the amount of loss after deducting the amount of claim)

To Loss by fire A/c

(ix) For goods sent on approval basis:

In such case if the entry for sale has been made but the consent has not been received till the year
ending:

(a) Sales A/c Dr.

To Debtors A/c

(b) Stock with Customers A/c Dr.

To Trading A/c

(x) For Sales Tax charged on sale :

(a) At the time of sale :

Cash/Debtors A/c Dr.

To Sales A/c

To Sales Tax Payable A/c

(b) On payment of sales tax :

Sales Tax Payable A/c Dr.

To Bank A/c

Sashi Publications Pvt Ltd Call 8443808873/ 8232083010