This document provides instructions for calculating key financial metrics related to a business that experienced a fire, including: calculating gross profit and gross profit ratio from a 12-month trading account; determining closing stock on the date of the fire from a memorandum trading account; calculating actual stock loss and fire extinguishing expenses; and determining the claim amount based on the policy amount, stock loss, and closing stock.

16. Hints:
1. Trading account: we prepare for the period of 12 months, recently
completed (before the year of fire) and we find Gross Profit.
2. Gross Profit Ratio: we find with the help of trading account profit upon
sales. The formula is Gross Profit/ sales X100.
3. Memorandum Trading Account: We prepare to find stock on the date of
fire (closing stock).
4. Actual loss of stock: we find loss occurred due to fire with the formula.
(Stock on the date of fire-salvage/scrap + Fire extinguish expenses).
5. Claim amount: we find claim amount with the formula ( Policy amount X
loss of stock / stock on the date of fire).
1. Gross profit
2. Rate of Gross Profit
3. Stock on the date of fire
4. Actual loss
5. Claim amount