loss of Stock 22.

37
Insurance Claim:

CU SOLVED QUESTIONS 2012-2016

ihe godown in the
lustratton S: ofY Ld.
caueht fire on March 31, 2011. As a result, stoch of goods
The
godown o e company were los. Goods
worth R82, "20 could, however, be saved from the accident.
following particulars are
supplied to you (Figs in ):
Stock on 01.01.2011 to the Purchase
1,20,000 Commission paid
Purchases to the date of tirek at 2°o on purchases
5,20,000 Manager
Carriage paid on purchases
3,200 Average Gross Protit on sales 33
Sales to the date of fire
3.60,000
in the godown. 1he s
The company had a fire policy" of R3,20,000 covering its stock of goods polcy
subject to Average clause. ou are to
ascertain
(a) total loss of stock;
(b) the amount of insurance claim to be made. CUB Com (Hons & Gen.), 2012
Calution
 result part of the stock was
fire 31.03.14. As a
litastration 26: The godown of N Lid caught on

destroyed. Goods worth 30,000 could, however, be saved from the accident.
The foliowing particulars are supliedto you (Fig in ) :
1,08.000 Sales less returns to the date of fire 3,00.000D
is at 1 lower than the cost às

Average rate of Gross Profit on sales 33

renurns the dateof fire .30.000
22.38 Financial Accounting

Sales up to 31.03. 14 included R30,000 for which goods had not been despatched. Purchases up to

31.03.14 did not include 20,000 for which invoice had not beenreceived from the suppliers, tihough
goods have been received at the godown.
The Company had a fire policy ofT1,50,000 covering its stock of goods in the godown. The policy
is subject to Average Clause.
1scertain the amount of insurance claim to be nmade. [CU B Com (Hons), 2014
 The company deeided to fie
llust ation 2 fire out in the godown ofZ Ld. o n 51.12. 201 3.
hrohe
njormation
lnNiurune'e Companr for loss of stock and gives you the Jollowing
determune
to
i i e s i t h the

he iunt to bec claimed (tig in ) :

2913
he ist of the company were prepared on 31st Murch.
d ' i ounts

b Sundry Debtors on 31.03. 2013 50,000 (e) Stock on 31.03.2013 25.000

() Sundry Dehtors on 31.12.2013 40,000 () Purchases from ,01.04.2013 to 31.12.2013 71,30,000
(d Cush riceived from Debtors 1,60,000 (g) Rate of gross profit to cost of sales 25%
4seertuin the amount of claim. CUB Com (Gen.), 2014
illustration 28: A
fre occurred in the godown
of ? Ld. 201th March, 2015 destroying the entire
on
stock. The books and records were salvaged from which the following particulars were ascertained

Figsin):
Sales for the year 2014 6,20.100 Purchases for the period from. 1.15 to 20.3. 15 75,600
Sales for the period from 1.1.15 to 20.3.15 1,82,0000 Stock on 1.1.14 1,98.640
Purchases for the year 2014 4,96.600 Stock on 31.12.14 2.33.090

The company has been following the practice of valuing

the stock of goods at actual cosr plus 10%.
Included in the stock on 1.1.14 were some damaged goods which originally cost I250 but were val
ued at T640. These goods were sold during the year 2014 for R500. Subject to this, the rate of gross
profit and the valuation of stock were uniform.
Ascertain the value of stock destroyed. ICUB Com (Hons), 20151
Cai Statement showing Value of Stock Destroved
ustration 29: A fire broke out in the godown of P Lid. o n 31st March 2014. As a result stock of
be saved from the
goods in the godown were damaged. Goods worth R82,720 could, bowever,
accident. Thefollowing particulars are supplied to you (Figs in <):
Stock on 01-01-2014 1,20,000 Sales up to the date of fire 3.60.000
5,20,000 Average Gross Prolit on sales 33
Purchase up to the date of fire

Carriage paid on purchases 4.240

in the godown. The policy

The Conpany had a fire policy of F3,20,000 covering its stock of goods
subject to average clause.
is
the of insurance claim to be
You are required to ascertain (i) total loss of Slack (ii) amount

zade CU B Com (Gen.), 20151

 Loss of Stock
22.41
Insurance Cloim

d
ilustration 30: On /th June 2016 the godown ofa company was destroyed by fire. From the retora
f the company theJollowing particulars were extracted (figure in ):
3 (00
stock as o n .1.2015
45,000 Salesless returns as for 31 12.2015

31.12.2015 Purchaseless returns from 1.1 2016 to 762016 25.000

k as on 60.000
76 20i6 180.
urchase less returns as for 31.12.2015 3,00.000 Purchase less returns from 1.1.2016 to

o n 31.12.2015. The
Poor selling goods worth 5,000 were written off while valuing closing stock a s 7 4.000) was
cost of which was
were R 8,000. A portion of this stock (original
original cost of g0ods original cost. Value
soldduring March, 2016 at a loss 1,000. The balance ofthis stock is worth the
of 7
rate throughout
of salvaged goods
was 7 1,000. Gross profit remained at an uniform
be claimed from insurance company.
You are required to ascertain
the amount of loss of stock to
CUB Com (Hons), 2016