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Fire damage to stock

Cchean5y ago
Please help, Here is the information. On 20 May 2021, a fire broke out in one of the storerooms and destroyed trading stock with a cost price of R36 800. After an investigation, the insurance company found that an electric heater caused the fire. The storeroom manager was the last person leaving the storeroom and admitted that he forgot to turn off the electric heater. The insurance company agreed to pay 60% of the stock losses instead of 90% due to the storeroom manager’s negligence. The insurance company will only pay the insurance amount in August 2021. Here is the question. Show all calculations that you will complete when youexplain the transaction • Show the effect of the transaction on the General ledger accounts of the business by using T-accounts. (7) • The effect of the transaction on the Statement of Comprehensive Income (Show the section the transaction will form part off and HOW the transaction will be entered) Thank you so much.
John MoffatJohn MoffatTutor5y ago#1
Sorry, but this question could not possibly be asked in Paper FA. (and you cannot be asked to write up t-accounts in Paper FA).
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