Reference no: EM132940359

Question - D Mart is a retail store and has been doing business for last 10 years. Accounting year of the company end every year at 31st December. At 31st December 2020 ending inventory of the company was Rs.112000

On 20th January, 2021 fire was occurred in the store and 80% of inventory was damaged. All the records of company was also lost in this incident. However, company had gathered following information from their suppliers and customers

One customer had acknowledged that sales had been made to him of amount of Rs.47500

One supplier informed the company that inventory of amount of Rs.29550 were delivered by them on 10th January, 2021

Discussion with one customer had revealed that an order of amount of Rs.32889 were received and dispatched on 18th January, 2021. However, the goods were in transit and not yet received by the customer.

One supplier informed the company that they had shipped the goods to company on 19th January. Goods were arrived on port and yet not received by D Mart. Cost of these goods were Rs.33000

Average gross profit rate for the last two years was 30% on selling price.

Requirement - Calculate amount of inventory loss due to fire.