Anupama Traders in Pune suffered a fire loss and needs to file an insurance claim. To calculate the claim amount: 1) Trading accounts for 2011-2013 were prepared to calculate average gross profit of 25%. 2) A memorandum trading account for 2014 up to the fire showed stock of Rs. 51,000 on the date of fire. 3) Actual loss was calculated as Rs. 51,000 - Rs. 9,000 salvaged stock = Rs. 42,000 4) Average clause was applied with the Rs. 34,000 policy amount insuring Rs. 51,000 stock. The claim amount calculated is Rs. 28,000.

1. Insurance Claim
Loss of Stock - V

2. Problem - IV
Find out the amount of claim to be lodged with the insurance company from the following information
relating to Anupama Traders, Pune.
Particulars 2011 2012 2013
1.1.14 to the
date of fire
Opening Stock 15000 ? ? ?
Purchases less returns 50000 75000 90000 60000
Sales less returns 60000 80000 130000 84000
Wages 3000 5000 6000 4000
Closing stock 20000 40000 50000 ?
1. During the year 2013, the closing stock included goods purchased but not recorded Rs. 5000.
2. Stock salvaged was Rs. 9000
3. Policy was of Rs. 34000 with an average clauses
4. The books are closed on 31 December every year.

3. Apply
Average
Clause and
calculate
claim amount
Calculate
Actual Loss
Preparation
of
Memorandum
Trading
Account
Calculation
of Gross and
Average
Gross Profit
Preparation
of Trading
Account for
2011,12 & 13

4. Trading account for 2011, 2012 and 2013
Particulars 2011 2012 2013 Particulars 2011 2012 2013
To Opening Stock 15000 20000 40000 By Sales 60000 80000 130000
To Purchases (*) 50000 75000 95000 By Closing Stock 20000 40000 50000
To Wages 3000 5000 6000
To Gross Profit 12000 20000 39000
80000 120000 180000 80000 120000 180000

5. Average Gross Profit
20 + 25 + 30
3 (Years)
= 25%
Average Gross Profit of the Company is 25%

6. Memorandum Trading Account
1.1.2014 onwards
Particulars Amount Particulars Amount
To Opening Stock 50000 By Sales 84000
To Purchases 60000 By Stock (Bal. Fig)
(Stock on the date
of fire)
51000
To Wages 4000
To Gross Profit
(25% on 84000)
21000
135000 135000

7. Calculation of Actual Loss
Stock on the date of fire 51000
Less – Stock Salvaged 9000
Actual loss by fire 42000

8. Calculation of Average Clause
Value of Insurance Policy
Value of Stock on the date
of fire
X Actual Loss
34000
51000
X 42000
Claim =28000