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Que 5. On 30 September,2018 fire occurred in the premises of Oxymoron LLC. The concern had taken an insurance policy of RO 87,000 which was

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Que 5. On 30 September,2018 fire occurred in the premises of Oxymoron LLC. The concern had taken an insurance policy of RO 87,000 which was subject to an average clause. From the books of accounts, the following information is available relating to the period from 1st April 2018 to 30 September 2018 1. Stock as per Balance sheet 31 March 2018, RO 138,620 2. Purchases (including purchase of machinery costing RO 43,500) RO 246,500 3. Wages (including wages for installing machinery RO 4,350) RO 72,500 4. Sales (including goods sold on approval basis amounting to RO 71,775) RO 398,750 No approval has been received in respect of the 2/3 of the goods sold on approval. 5. The average rate of gross profit is 20% on sales. 6. The value of salvaged goods was RO 17,835

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