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Final Scanner 2 Flipbook PDF
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25
CA Inter Accounts | Insurance Claim
Insurance Claim (Scanner) All questions of Module and Scanner are solved in same format.
Note: a) No accounting is done. b) Types of questions 1] Loss by Fire: Find stock available on date of fire from incomplete records -prepare Memorandum Trading Account -any flow of goods for other than sale taken @ cost. -calculate closing stock -compare closing stock with policy value for applicability of “average clause”
Module
1. Illustration 1 (Module) On 12th June, 2014 fire occurred in the premises of N.R. Patel, a paper merchant. Most of the stocks were destroyed, cost of stock salvaged being Rs. 11,200. In addition, some stock was salvaged in a damaged condition and its value in that condition was agreed at Rs. 10,500. From the books of account, the following particulars were available.
1.
His stock at the close of account on December 31, 2013 was valued at Rs. 83,500.
2.
His purchases from 1-1-2014 to 12-6-2014 amounted to Rs. 1,12,000 and his sales during that period amounted to Rs. 1,54,000.
On the basis of his accounts for the past three years it appears that he earns on an average a gross profit of 30% of sales. Patel has insured his stock for Rs. 60,000. Compute the amount of the claim.
Answer: Memorandum Trading Account Particulars To Opening Stock To Purchases To GP [1,54,000 x 30%] Total CA Anand R Bhangariya 8600 320000
Rs. Particulars 83,500 By Sales 1,12,000 By Closing stock [bal. figure] 46,200 2,41,700 Total www.cavidya.com
Rs. 1,54,000 87,700 2,41,700 84218 84218, 75887 75887
26
CA Inter Accounts | Insurance Claim
Calculation of loss Particulars Closing Stock Less Salvage Value Loss
Calculation
Rs. 87,700 21,700 66,000
[11,200 + 10,500]
Policy value = 60,000 As value of closing stock is more than the policy value, average clause is applicable 60,000
Claim = 66000 x 87,700 = 45,154
2. Illustration 2 (Module) 1st April, 2015 the stock of Shri Ramesh was destroyed by fire but sufficient records were saved from which following particulars were ascertained:
Particulars Stock at cost-1st January, 2014
73,500
Stock at cost-31st December, 2014
79,600
Purchases-year ended 31st December, 2014
3,98,000
Sales-year ended 31st December, 2014
4,87,000
Purchases-1-1-2015 to 31-3-2015
1,62,000
Sales-1-1-2015 to 31-3-2015
2,31,200
In valuing the stock for the Balance Sheet at 31st December, 2014 2,300 had been written off on certain stock which was a poor selling line having the cost 6,900. A portion of these goods were sold in March, 2015 at loss of 250 on original cost of 3450. The remainder of this stock was now estimated to be worth its original cost. Subject to the above exception, gross profit had remained at a uniform rate throughout the year. The value of stock salvaged was 5,800. The policy was for 50,000 and was subject to the average clause. Work out the amount of the claim of loss by fire.
Answer: Trading Account For 1/1/14 To 31/12/14 Particulars
N
To Op. Stock
73,500
To Purchases
3,91,100
To GP Total
97,400 5,62,000
CA Anand R Bhangariya 8600 320000
A
Rs. --
Particulars
73,500 By Sales
4,87,000
6,900 3,98,000 By Closing stock (2,300) 4,600
N
A
Rs. -- 4,87,000
75,000
4,600
79,600
5,62,000
4,600
5,66,600
95,100 5,66,600
Total
www.cavidya.com
84218 84218, 75887 75887
27
CA Inter Accounts | Insurance Claim
97400
GP Rate = 487000 x 100 = 20% Memorandum Trading Account For 1/1/11 To 19/05/11 Particulars
N
To Op. Stock
75,000
To Purchases
1,62,000
To G.P. [20%]
45,600
Total
2,82,600
Calculation of loss Particulars Closing Stock Less Salvage Value Loss
A
Rs.
4,600
Particulars
79,600 By Sales
-- 1,62,000 By Closing stock 2,050 6,650
N
A
2,28,000
Rs.
3,200 2,31,200
54,600
3,450
58,050
47,650 2,89,250
Total
2,82,600
6,650
2,89,250
Rs. 58,050 5,800 52,250
Policy value = 50,000 As value of closing stock is more than the policy value, average clause is applicable 50,000 Claim = 52,250 x 58,050 = 45,004 # don’t see module for calculation of abnormal stock
CA Anand R Bhangariya 8600 320000
www.cavidya.com
84218 84218, 75887 75887