Question

Trading Account
2. From the following information, determine Gross Profit for the year ended 31st March, 2020
Opening Stock (1st April, 2019)
Freight and Packing
Sales
25,000
10,000
1,90,000
Goods purchased during the year
Closing Stock (31st March, 2020)
Packing Expenses on Sales
Gross Profit-45,000
1.40,000
30,000
6,000​

Answer 1

Explanation:

Option Rs. 121000

Loss of Stock = Rs. 1,21,000

Explanation:

Given :

Stock on the date of fire = Rs.1,50,000

Salvage Value = Rs. 29,000

To find :

Calculate Actual loss

Solution :

As given In the question :

Stock on the date of fire = Rs.1,50,000

Salvage Value = Rs. 29,000

Amount of loss of Stock is calculated as under :

Value of Stock on the date of fire 1,50,000

Less : Value of Salvaged Stock 29,000

Loss of Stock 1,21,000

Amount of loss of Stock 1,21,000

★ Additional Information :

Claim subject to average clause :

Amount of Policy / Value of Stock ×

Actual loss of Stock

\sf{\dfrac{Amount \: of \: Policy }{Value \: of \: Stock} \: \times \:Actual \: loss \: of \: Stock}

ValueofStock

AmountofPolicy

×ActuallossofStock

∴ Loss of Stock = Rs. 1,21,000