Problem 5. Stock Creditors Malcom owns a retail stationery shop which was partly destroyed by fire on 27th June, 1991. The stock was insured for Rs. 13,000. The Balance Sheet drawn on 31st December, 1990 included, inter alia, the fol- lowing items : Rs 12,500 3,500 On examination of the books of accounts for the subsequent period up to the date of fire, the following particulars were obtained : Rs. 88,800 Payment to creditors for goods 75,000 Creditors as on 27.6.91 1,800 A physical check of stock after r the fire showed that items undamaged were Rs. 7,000. The normal rate of gross profit is 25 per cent on cost, but the stock on 31st December, 1990 included items of discontinued lines totalling Rs. 3,800 which were all sold during the next two months at cost. You are required to compute the amount of claim to be made to the insurer. There was an average clause in the policy. Sales