Stock is an item of trading account, hence in case of loss of stock, the stock needs to be reduced. Hence the loss of stock due to the fire which was not insured is a complete loss to the business. The following accounting entry will be passed:Profit & Loss A/c Dr. 10,000 To Trading A/c 10,000Therefore, if stock worth Rs. 10,000 (that has not been insured) is destroyed by fire, the accounting entry is Dr Profit &Loss A/c 10,000 Cr Trading A/c10,000.