Question

On 1.4.2020, the godown of Vista Ltd. was destroyed by fire and a considerable part of

the stock was destroyed. The stock salvaged was Rs. 40,000. Vista Ltd. had taken a fire

insurance policy for Rs. 1,68,000 to cover the loss of stock by fire.

The records of the company revealed the following particulars:

Rs.

Stock on 01.01.2019 1,70,000

Stock on 31.12.2019 2,20,000

Purchases during 2019 4,10,000

Sales during 2019 5,30,000

Purchase from 01.01.2020 to the date of fire 75,000

Sales from 01.01.2020 to the date of fire 1,00,000

Wages paid during 2019 89,160

Wages paid from 01.01.2020 to the date of fire 23,500

It was the practice of the company to value its stock at cost plus 10%. Calculate the

amount of claim to be submitted to the Insurance Company​

Answer 1

Answer:

the stock was destroyed. The stock salvaged was Rs. 40,000. Vista Ltd. had taken a fire

insurance policy for Rs. 1,68,000 to cover the loss of stock by fire.

The records of the company revealed the following particulars:

Rs.

Stock on 01.01.2019 1,70,000

Stock on 31.12.2019 2,20,000

Purchases during 2019 4,10,000

Sales during 2019 5,30,000

Purchase from 01.01.2020 to the date of fire 75,000