(Devarim 13:16) "Smite shall you smite": Whence is it derived that if you cannot put them (the inhabitants of a condemned city) to death by the specified penalty, you may do so by any of the death penalties of the Torah, whether of greater or lesser severity, and not leave it unpunished? From "Smite shall you smite" (in any event).

"the inhabitants of that city": and not those of a different city (found within it).

From here they ruled: (The members of) an ass-caravan or a camel caravan that goes from place to place and rested within it, and they were turned astray with them — If it camped there for thirty days, they are put to death by the sword and their possessions are lost; if less than thirty days, they are put to death by stoning, and their possessions "escape."

"lay waste it": to exclude the property (found in the city) of the righteous ones who live outside it.

"and all that is in it": to include the property of the righteous ones who live in the city. From here they ruled: The property of the righteous ones (who live) in it is destroyed; and (the property of the righteous ones who live) outside of it "escapes." And (the property of) the wicked ones, whether inside it or outside of it is destroyed.

"and its beasts": and not the beasts of hekdesh (those consecrated as offerings).