Prasad consigned 10000 liters of oil to Arjun at a cost of Rs.55 per liter. The following further details are available-
Prasad incurred transportation and insurance cost of Rs. 7500.
During transit 250 liters were lost due to evaporation.
Arjun received only 9000 liters and incurred Rs. 9900 towards taking delivery of goods, Rs. 12500 towards advertising and selling expenses. It was found that 750 liters of oil were lost in transit due to accident. Arjun is entitled to a commission of 10%. As per the account sales, Arjun sold 7000liters at Rs. 75 per liter.
Arjun also reported that there was a loss of 500 liters of oil in his godown, due to leakage of packets. This loss is not covered by insurance.
a. compute the value of closing stock and abnormal loss.
b. give journal entries for recording abnormal loss if the insurance claim is accepted at Rs. 36000 for transit loss.
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Answer:
answer 550000
Explanation:
If you will multiply 1000 ×55
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