Regarding loss on sale due to fire

[YASH JAIN]

I had purchased the goods from one party & sold to another party for Rs 295000 but fire occured at time of sales and goods destroyed and insurance claim received of Rs 293000 what journal entry passed in books of accounts & how to give impact in GST

AI Summary

Business Inventory Destroyed by Fire: Accounting for Rs. 293,000 Insurance Claim and GST Treatment of Partial Loss A business purchased goods for sale but experienced a fire that destroyed the inventory before completion. An insurance claim of Rs. 293,000 was received for goods valued at Rs. 295,000. The discussion focuses on appropriate accounting journal entries and GST implications, detailing how to record the loss, handle insurance proceeds, and manage potential tax reporting requirements depending on whether a tax invoice was previously issued.