Question
A fire occurred on 1st July 2014 in the premises of Aerolite Ltd., and business was disorganized up to 30th November 2014. From the books
A fire occurred on 1st July 2014 in the premises of Aerolite Ltd., and business was disorganized up to 30th November 2014. From the books of account, the following information was extracted (all figures in $): Actual turnover from 1st July 2014 to 30th Nov. 2014 60,000 Turnover for the last financial year 5,00,000 Turnover from 1st July 2013 to 30th Nov. 2013 2,00,000 Turnover for the year ending 30th June 2014 5,50,000 Net Profit for the last financial year 90,000 Total standing charges for the year 72,000 Insured standing charges for the last financial year 60,000 The company incurred additional expenses amounting to 9,000 which reduced the loss in turnover. There was also a saving of 2,486 during the indemnity period. The company holds a "Loss of profit" policy for 1,65,000 having an indemnity period of 6 months. There was a considerable increase in trade and it was agreed that an adjustment of 20% is made in respect of upward trend in turnover. Compute claim under "Loss of profit insurance".
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