Stock of Rs. 4000 is destroyed by fire. It was fully covered by insurance. Accounting entry is
1
Stock A/c Dr. 4000
To Trading A/c 4000
2
P & L A/c Dr. 4000
To Trading A/c 4000
3
Trading A/c Dr. 4000
To Insurance Claims A/c 4000
4
Insurance Claims A/c Dr. 4000
To Trading A/c 4000