Question

TO CLAIM THE LOSS OF STOCK DUE TO FIRE A BUSINESSMAN MUST KNOW

Answer 1

Answer:

The items that are needed or available are:

Step 1: First, try to know the value of opening stock of the year, in which the fire broke out.

Step 2: To the above (Step 1), add the net purchases made up to the date of fire.

Step 3: From the result of Step 2, deduct the cost of goods sold

Explanation:

Answer 2

Answer:

Answer is describe below:

Explanation:

To claim the loss of stock due to Fire a businessman must know the policy and principle of insurance.

In the case of fire. principle of indemnity is follow in which compensation of loss is provide by company upto the amount of policy condition not to amount of loss (in case the amount is exceed from policy amount)

Businessman also know the policy of general insurance in which he takes fire insurance.

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