# Goods in stock worth 800 are destroyed by fire and the Insurance Co. is accepted the claim for 600. Adjustment would involve? with Answer - Accounting Mcqs | TestPrep

> Solved MCQ: Goods in stock worth 800 are destroyed by fire and the Insurance Co. is accepted the claim for 600. Adjustment would involve Correct Answer: D. Debit of 600 and 200 to insurance company and Profit and Loss Account respectively andcredit of 800 to Trading Account. Verified answer explanation for FPSC, PPSC, MDCAT, NTS, and CSS competitive exam preparation.

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# Goods in stock worth 800 are destroyed by fire and the Insurance Co. is accepted the claim for 600. Adjustment would involve

Direct Answer & Quick Reference

The correct option is **D. Debit of 600 and 200 to insurance company and Profit and Loss Account respectively andcredit of 800 to Trading Account**.

A. Debit of 800 to Trading Account and credit of 600 and 200 to insurance company and

B. Deduct the 800 from closing stock in the Trading Account

C. Credit insurance company for 600

D. Debit of 600 and 200 to insurance company and Profit and Loss Account respectively and

✨ Explain with AI

Verified Key: D. Debit of 600 and 200 to insurance company and Profit and Loss Account respectively andcredit of 800 to Trading Account
Solved by 2,767+ students

Verified against official examination board answer keys and standard curriculum textbooks.

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