Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question 2 A fire occurred in the premises of M/s Ampol Co. on 31 May 2020. From the following particulars relating to the period

image text in transcribed

Question 2 A fire occurred in the premises of M/s Ampol Co. on 31 May 2020. From the following particulars relating to the period from 1" January 2020 to 31st May 2020, you are requested to ascertain the amount of claim to be filed with the insurance company for the loss of stock. The concern had taken an insurance policy of RO 240,000 which is subject to an average clause. 1. Stock as per Balance Sheet at 31-12-2019 2. Purchases 3. RO 396,000 680,000 Wages (including wages for the installations of a machine OR 200,000 12,000) 4. Sales 5. Sale Value of goods drawn by partners 6. Cost of goods sent to consignee on 16th May, 2020 7. Cost of goods distributed as free samples 968,000 60,000 66,000 6,000 While valuing the stock at 31 December, 2019, RO 4,000 were written off in respect of a slow moving item. The cost of which was RO 20,000. A portion of these goods were sold at a loss of RO 2,000 on the original cost of RO 10,000. The remainder of the stock is now estimated to be worth the original cost. The value of goods salvaged was estimated at RO 80,000. The average rate of gross profit was 20% throughout. Required: (a) Calculate the value of claim. (b) Show all the relevant workings (10 marks) (10 marks) (c) Explain how the amount of claim be calculated in case of Total Loss and Partial Loss. (10 mark)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Forensic Accounting

Authors: Robert Rufus, Laura Miller, William Hahn

1st Edition

133427528, 133050475, 9780133427523, 978-0133050479

More Books

Students also viewed these Accounting questions