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SGanneBy Scanger, less salvage), and (c) compute the amount of claim (value of policy , value of total stock x loss), Illustration 3) (Basic), cot of actual stocK destroyea on uie ualt vI 1IO(U --, On 17th June, 2013, a fire occurred in the premises of Mr. Bookworm, a bookseller. Most of the, stock was destroyed, the cost of the salvaged stock being 7 11,200. In addition, some stock, salvaged in damaged condition and its value was estimated at 10,400. The following particu&r, were available from the books of accounts-:, (1) Stock at the close of accounts on 31st December, 2012 was 83,500., (2) Purchases from 1-1-2013 to 17-6-2013 amounted to ? 1,12,000 and sales during that pen, amounted to 1,54,000., (3) On the basis of the past three years it appears that on average the gross profit of 25% is earred, on sales., Stock was insured for 75,000. Compute the amount of claim., 6.13

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Policy, Claim =, x Loss =, 75,000, Stock, x 58,400, 7 54,750, 80,000, Ilustration 4(Abnormal Item; Fire,Fighting Expenses), On 30th June, 2013 accidental fire destroyed a major part of the stocks in the godown of Jaya, Associates. Stocks costing 30,000/- could be salvaged but not their stock ledgers. A fire insurarge, policy was in force under which the sum insured was ? 3,50,000., You are given the following date from available records :, (a) Total of Sales invoices during the period April to June amounted to 30,20,000/-. An analysis, showed that goods of the value of 3,00,000 had been returned by the customers before he, date of fire., (b) Opening stock on 1st April, 2013 was { 2,20,000 including stock of value of 20,000 being lower, of cost and net value subsequently realised.), (c) Purchases between 1st April, 2013 and 30th June 2013 were 21,00,000., (d) Normal gross profit ratio was 33'/ % -), (e) A sum of 30,000/- was incurred by way of fire fighting expenses on the day of the fire. Prepare, (SYBCom, IDE, Oct. 2006, adapted), a statement of insurance claim., Solution :, A. Computing Stock :, Jaya Associates, Cr., Tradina Account

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Scanted By Scanner Go, 250, Accountancy and Financial Management (F. Y.B.Com.: SEM., C. Computing Claim :, Policy, 3,50,000, Claim =, x 5,00,000 = 3,50,000, x Loss =, Stock, 5,00,000, Note : Fire fighting expenses have been incurred for the purpose of salvaging the goods from, fire and on that logic the same has been added to determine the total Actual Loss., Illustration 5 (Goods withdrawn), A fire occurred in the premises of Agni on 25th August, 2013 when a large part of the stock, destroyed. Salvage was 15,000. Agni gives you the following information for the period Janua, 2013 to August 25th, 2013 :, (a) Purchases 85,000, (b) Sales 7 90,000, Goods costing 5,000 were taken by Agni for personal use., Cost price of stock on January 1, 2013 was { 40;000., Over the past few years, Agni has been selling goods at a consistent gross profit margin of 33'/,%., The Insurance Policy was for { 50,000. It included an average clause., Agni asks you to prepare a statement of claim to be made on the insurance company., (SYBCom, April 2016, CA Inter Nov. 97, adapted), Solution :, A. Computing Stock:, Dr., Memorandum Trading Account, Cr., 11-1-2012 to 25.8

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scanned By Seanner, 1,50,000, 60,000, 15,000, 45,000, B. Computing Loss :, Closing Stock on 25th August, 2013, Less : Salvage, June., 30/06, Jely, 60,006, 50,00, Loss, C. Computing Claim :, Value of Stock on hand, Amount of Policy, 37,50, Policy, x Loss, 50,000, x 45,000, Claim, Stock, 60,000, Bontire Enterprises close their accounts on 30th June every year. On 30th September 2013 a maj, me destroyed most of their stock. Following information coufd be gathered from their books :, 3,60,000, 6,00,000, 2,30,000, 10,00,000, 10,000, 15,000, mustration 6) (Opening Stock Undervalued, Purchased' include Furniture), Particulars, Stock on 30th June 2013, Purchases - 1st July, 2013 to 30th September 2013, Wages - 1st July, 2013 to 30th September 2013, Sales - 1st July, 2013 to 30th September 2013, Carriage inward for the above period, Carriage outward for the above period, Average percentage of G.P to cost is 33'3. Stock of the value of 75,000 could be salvaged. Policy, was for { 2,50,000. Claim was subject to average clause., Following further information is available :, (1)'Stock in the beginning was calculated at 10% less than cost., (2) Purchases include purchase of furniture 25,000.

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Spanned ByScartner Go, Fire Insurance Claims, 25E, (3) Amount spent for bringing and setting-up the furniture in the office was { 5,000 which was, included in carriage inward., You are required to calculate the amount of claim., (SYBCom, IDE, April 03, 05 & 07, FYBAF, Oct. 2018, adapted), Bonfire Enterprises, Solution :, A. Compute Stock :, Dr., Memorandum Trading Account, (From 1-7-2013 to 30-9-2013)