Question

37. On 1.1.19 there was a fire in the godown of M/s. ABC & Co. destroying a part of stock. The entity
to be worth 40% of original cost. Stock valuing 18,000 was salvaged.
Stock at a
Stock at
Purchase
Purchas
Sales d
Sales f
Durin
have
furnished the following information :
56,000
Stock on 1.4.17
3,80,000
Purchases during 2017-18
5,00,000
Sales during 2017-18
30,000
Stock on 31.3.18
2,00,000
Purchases from 1.4.18 to 1.1.19
2,00,000
Sales from 1.4.18 to 1.1.19
Stock on 31.3.18 includes abnormal items costing * 15,000 which was written down by ? 6,000.
Two-thirds of the abnormal items were sold on 30.6.18 at a loss of 35,000 on the original cost. This
amount is included in sales during the relevant period. Balance of the abnormal items were valued at
cost. Value of goods salvaged * 7,000 and policy value was 50,000.
(C.u., B.Com.'17- Adapted]
Compute the insurance claim to be made by M/s. ABC & Co.​

Answer 1

Answer:

A sell stop order, often referred to as a stop-loss order, sets a command to sell a security if it hits a certain price. When the security reaches the stop price, the order executes, and shares or contracts are sold at the market. The sell stop is always placed below the security's market price.