A fire occurred on 1st february 2006 in the premises of

Assignment Help Accounting Basics

Reference no: EM13581164

A fire occurred on 1st February, 2006, in the premises of Pioneer Ltd., a retail store and business was partially disorganised upto 30th June, 2006. The company was insured under a loss of profits for Rs. 1,25,000 with a six months period indemnity. From the following information, compute the amount of claim under the loss of profit policy.

Actual turnover from 1st February to 30th June, 2006 80,000
Turnover from 1st February to 30th June, 2005 2,00,000
Turnover from 1st February, 2005 to 31st January, 2006 4,50,000
Net Profit for last financial year 70,000
Insured standing charges for last financial year 56,000
Total standing charges for last financial year 64,000
Turnover for the last financial year 4,20,000

The company incurred additional expenses amounting to Rs. 6,700 which reduced the loss in turnover.There was also a saving during the indemnity period of Rs. 2,450 in the insured standing charges as a result of the fire.There had been a considerable increase in trade since the date of the last annual accounts and it has been agreed that an adjustment of 15% be made in respect of the upward trend in turnover?

Reference no: EM13581164

Questions Cloud

A variety of depreciation methods are used to allocate the : a variety of depreciation methods are used to allocate the cost of an asset to all of the accounting periods benefited

The ledger of custer company has the following work in : the ledger of custer company has the following work in process account. work in processacirc??painting 51 balance 3860

Materials often represent a substantial portion of a : materials often represent a substantial portion of a manufacturing companys assets. therefore they should be controlled

Korsak corporation decided to issue common stock and used : korsak corporation decided to issue common stock and used the 331700 proceeds to redeem all of its outstanding bonds

A fire occurred on 1st february 2006 in the premises of : a fire occurred on 1st february 2006 in the premises of pioneer ltd. a retail store and business was partially

Dolce co estimates its sales at 180000 units in the first : 1 dolce co. estimates its sales at 180000 units in the first quarter and that sales will increase by 18000 units each

Depreciation on hire purchased asset is claimed by under : 1. depreciation on hire purchased asset is claimed by a hire vendor b hire purchaser c either the hire vendor or the

X transport ltd purchased from delhi motors 3 tempos : x transport ltd. purchased from delhi motors 3 tempos costing rs. 50000 each on the hire purchase system on 1-1-2004.

Dring 2011 arthur corporation reported a net income of : during 2011 arthur corporation reported a net income of 3059000. on january 1 arthur had 2800000 shares of common

User Account

All Pages