Question

From the following balances obtained from the records of Mr. Shankar, Prepare the Trading Account for

the year ending 31st March 2020.

₹

Opening Stock 2,00,000

Purchases for the year 20,00,000

Sales for the year 35,00,000

Carriage inwards 10,000

Closing stock is valued 5,00,000
Attach picture of answer! ​

Answer 1

Answer:

Option Rs. 121000

Loss of Stock = Rs. 1,21,000

Explanation:

Given :

Stock on the date of fire = Rs.1,50,000

Salvage Value = Rs. 29,000

To find :

Calculate Actual loss

Solution :

As given In the question :

Stock on the date of fire = Rs.1,50,000

Salvage Value = Rs. 29,000

Amount of loss of Stock is calculated as under :

Value of Stock on the date of fire 1,50,000

Less : Value of Salvaged Stock 29,000

Loss of Stock 1,21,000

Amount of loss of Stock 1,21,000

★ Additional Information :

Claim subject to average clause :

Amount of Policy / Value of Stock ×

Actual loss of Stock

\sf{\dfrac{Amount \: of \: Policy }{Value \: of \: Stock} \: \times \:Actual \: loss \: of \: Stock}

ValueofStock

AmountofPolicy

×ActuallossofStock

∴ Loss of Stock = Rs. 1,21,000