Question 4 A fire occurred in the premises of M/s. Fireproof Co. on 31 August, 2011. From the following particulars relating to the period from 1 April , 2011 to 318 August, 2011, 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 for 260,000 which is subject to an average clause 0 Stock as per Balance Sheet at 31-03-2011 99,000 (ii) Purchases 1,70,000 Wages (including wages for the installation of a machine 73,000) 50,000 (iv) Sales 2,42,000 (V) Sale value of goods drawn by partners 15,000 (vi) Cost of goods sent to consignee on 16th August, 2011, lying unsold with them 16,500 (vii) Cost of goods distributed as free samples 1,500 While valuing the stock at 31 March, 2011, 1,000 were written off in respect of a slow moving item. The cost of which was 75,000. A portion of these goods were sold at a loss of 8500 on the original cost of 2,500. The remainder of the stock is now estimated to be worth the original cost. The value of goods salvaged was estimated at 720,000. The average rate of gross profit was 20% throughout