Question

Mukesh sold goods to Suresh at an invoice price of Rs. 6,00,000 at cost plus 25%. 1/4th of the goods are lost in transit. Insurance claim of Rs.72,000 is received. What is the amount of abnormal loss to be debited to P & L a/c? a) Rs.1,20,000 b) Rs.48,000 c) Rs.72,000 d) Rs.1,50,000

Answer 1

Answer:

b. 48,000

Explanation:

6,00,000 including 25% of profit

so cost price be

6,00,000 × 100/125 = 4,80,000

goods destroyed 4,80,000 × 1/4= 1,20,000

insurance company accepts claim 72,000 so loss is 48,000

(1,20,000 - 72,000)