If goods destroyed by fire and Insurance company accepted a claim of full amount then where its effect would appear in final accounts?(a) Only on credit side of Trading Account(b) Debit side of Trading Account (deducted from purchase) and debit side of Profit and Loss Account(c) Debit side of Trading Account (deducted from purchase) and Assets side of Balance Sheet(d) Credit side of Trading Account, debit side of Profit and Loss Account and assets side of Balance Sheet

If goods destroyed by fire and Insurance company accepted a claim of f

1.	If goods destroyed by fire and Insurance company accepted a claim of full amount then where its effect would appear in final accounts?(a) Only on credit side of Trading Account(b) Debit side of Trading Account (deducted from purchase) and debit side of Profit and Loss Account(c) Debit side of Trading Account (deducted from purchase) and Assets side of Balance Sheet(d) Credit side of Trading Account, debit side of Profit and Loss Account and assets side of Balance Sheet
Answer» Correct option is (c) Debit side of Trading Account (deducted from purchase) and Assets side of Balance Sheet