Question

Ragini has insured her house for rs.5 lakhs against the fire. There is a fire & she suffers a loss of rs.2 lakhs. How much amount she can recover from the insurer? Name & explain the principle is applicable in the above situation?

Answer 1

Answer:

Net sales is what remains after all returns, allowances and sales discounts have been subtracted from gross sales.

For example, if a company has gross sales of $100,000, sales returns of $5,000, sales allowances of $3,000 and discounts of $2,000, the net sales are calculated like this:

$100,000 Gross Sales – $5,000 Sales Returns – 3,000 Sales Allowances – $2,000 Discounts = $90,000 Net Sales