Question 3: On 20 June 2019 , the warehouse and attached business premises of Fashion Wear Cloth Mill SAOC were affected by fire. The following information is available from the salvaged books of account. Amount (OMR) Stock of goods @ 10% lower than cost as on January 1, 2019 216,000 Purchases less returns (January 1, 2019, to June 20, 2019) 280000 Sales less returns (January 1, 2019, to June 20, 2019) 620000 Additional Information : Sales up to June 20, 2019, include OMR 80,000 worth of goods which had not been dispatched. Purchases up to June 20, 2019, did not include OMR 40,000 worth of goods for which purchase invoices had not been received from the suppliers, but the goods had been received in stored in the warehouse. Past records show the gross profit rate of 25 % Value of goods salvaged OMR 31,000 Fashion Wear had insured their stock for OMR 85,000. You are required to compute the amount of claim to be lodged with the insurer justifying the method applied.
Question 3: On 20 June 2019 , the warehouse and attached business premises of Fashion Wear Cloth Mill SAOC were affected by fire. The following information is available from the salvaged books of account. Amount (OMR) Stock of goods @ 10% lower than cost as on January 1, 2019 216,000 Purchases less returns (January 1, 2019, to June 20, 2019) 280000 Sales less returns (January 1, 2019, to June 20, 2019) 620000 Additional Information : Sales up to June 20, 2019, include OMR 80,000 worth of goods which had not been dispatched. Purchases up to June 20, 2019, did not include OMR 40,000 worth of goods for which purchase invoices had not been received from the suppliers, but the goods had been received in stored in the warehouse. Past records show the gross profit rate of 25 % Value of goods salvaged OMR 31,000 Fashion Wear had insured their stock for OMR 85,000. You are required to compute the amount of claim to be lodged with the insurer justifying the method applied.
Chapter1: Financial Statements And Business Decisions
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Question 3: On 20 June 2019 , the warehouse and attached business premises of Fashion Wear Cloth Mill SAOC were affected by fire. The following information is available from the salvaged books of account.
|
|
Amount (OMR) |
|
Stock of goods @ 10% lower than cost as on January 1, 2019 |
216,000 |
|
Purchases less returns (January 1, 2019, to June 20, 2019) |
280000 |
|
Sales less returns (January 1, 2019, to June 20, 2019) |
620000 |
Additional Information :
- Sales up to June 20, 2019, include OMR 80,000 worth of goods which had not been dispatched.
- Purchases up to June 20, 2019, did not include OMR 40,000 worth of goods for which purchase invoices had not been received from the suppliers, but the goods had been received in stored in the warehouse.
- Past records show the gross profit rate of 25 %
- Value of goods salvaged OMR 31,000
- Fashion Wear had insured their stock for OMR 85,000.
You are required to compute the amount of claim to be lodged with the insurer justifying the method applied.
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