12. Petro-Complex Ltd. suffered loss of stock due to fire on May 15,2019.

From the following

information, prepare a statement showing the claim to be lodged:
Stock on 1-1-2018 ₹38,400
Purchases during 2018 ₹1,60,000
Sales during 2018 ₹2,02,600
Closing stock on 31-12-2018 ₹31,800
Purchases from 1-1-2019 to 15-5-2019 ₹54,000
Sales from 1-1-2019 to 15-5-2019 ₹61,400
An item of stock purchased in 2017 at a cost of ₹ 10,000 was valued at 6,000 on 31-12-2017. Half
of this stock was sold in 2018 for ₹ 2,600, the remaining was valued at ₹2,400 on 31-12-2018. One-
fourth of the original stock was sold in March, 2019 for ₹1,400 and the remaining stock was
considered to be worth 60% of the original cost. Salvage value ₹ 12,000. The amount of the
policy was ₹ 30,000 and there was an average clause in the policy.

13. On 30th September, 2021 the stock of Ajay Ltd. was lost in a fire accident. From the available
records, the following information is made available to you to enable you to prepare the
statement of claim on the insurers.
Stock at cost on 1-4-2018 ₹ 37,500
Stock at cost on 31-3-2019 ₹ 52,000
Purchases less returns for the year ended 31-3-2019 ₹ 2,53,750
Sales less returns for the year ended 31-3-2019 ₹ 3,15,000
Purchases less returns up to 30-09-2019 ₹ 1,45,000
Sales less returns up to 30-09-2019 ₹ 1,84,050
In valuing the stock on 31-03-2019, due to obsolescence, 50% of the value of the stock
which originally cost of ₹ 6,000 had been written off. In May, 2019 three-fourths of his stock had
been sold at 90% of the original cost and it is now expected that the balance of the obsolete
stock would also realise the same price. Subject to the above, gross profit had remained uniform
throughout.
Stock of the value of ₹ 7,200 was salvaged.
14. A fire occurred in the premises of Shiva & Co. on 1-9-2017 and the value of stock saved was ₹
1,01,000. The following information was obtained:
Purchases during the year ended 31-03-2017 ₹ 6,80,000.
Sales for the year ended 31-3-2017 ₹ 11,00,000
Purchases from 1-4-2017 to 30-09-2017 ₹ 2,50,000
Sales from 1-4-2017 to 30-09-2017 ₹3,60,000
Stock on 31-3-2016 ₹ 3,00,000
Stock on 31-03-2017 ₹ 3,40,000

Further information that the stock on 31-03-2017 was over-valued by ₹ 20,000. Calculate the
amount of claim to be presented to the Insurance Company in respect of loss. In April 2017,
selling price was lowered by 10%.

15. Rahul owns a retail shop which was destroyed by fire on 31st March 2017. The stock was
destroyed with exception of ₹ 41,360. The stock was insured for ₹ 1,60,000. The following
particulars are available from the books of accounts of the firm.
Stock on 1-1-2017 ₹ 60,000
Purchases to the date of fire ₹ 2,60,000
Sales to the date of fire ₹ 1,80,000
Commission paid to purchase manager on purchases 2%
Carriage paid on purchases ₹ 1,600
Average gross profit on cost 60%
You are required to calculate:
a) Total loss of stock
b) Amount of claim to be made against the insurance company.
16. On 15th May, 2021, fire occurred in the godowns of a trader and almost the entire stock,
which was fully insured, was destroyed. The salvage value taken at the agreed valuation of
₹15,000. From the last year’s records, the following details were obtained.
Opening stock on 1st April, 2021 ₹2,40,000
Purchases less returns up to 14 May, 2021 ₹10,20,000
Sales less returns up to 14th May, 2021 ₹11,60,000
Gross profit on sales during the last five years were 20%, 21%, 22%, 30% and 12%.
The salvages stock was renovated and made for sale at a cost of ₹8,000. A part of this stock was
sold at ₹26,000 and the balance was valued at ₹4,000.
Work out the fire insurance claim and show the Salvaged Stock Account.

17. On 15th April, 2021, fire occurred in the godowns of a trader and almost the entire stock,
which was fully insured, was destroyed. The salvage value taken at the agreed valuation of
₹7,500. From the last year’s records, the following details were obtained.
Opening stock on 1st April, 2021 ₹1,20,000
Purchases less returns up to 14 April, 2021 ₹5,10,000
Sales less returns up to 14th April, 2021 ₹5,80,000
Gross profit on sales during the last five years were 30%, 31%, 32%, 30% and 32%.
The salvages stock was renovated and made for sale at a cost of ₹4,000. A part of this stock was
sold at ₹13,000 and the balance was valued at ₹2,000.
Work out the fire insurance claim and show the Salvaged Stock Account.

18. A large portion of the records and stock of a trading concern was lost due to fire accident on
15.04.2022. Later, goods worth ₹ 8,000 and some records were salvaged from the fire. The
following details are available from these records.

Period 2017 2018 2019 2020 2021

Sales (₹) 8,60,000 7,10,000 6,00,000 5,50,000 4,80,000
Gross profit (₹) 2,15,000 2,13,000 2,00,000 1,87,000 1,60,000

On 31-12-2021, the stock was valued at ₹97,000. From 1.1.2022 to the date of fire, purchases, sales
and wages were ₹75,000, ₹1,59,000 and ₹30,000 respectively.
Prepare a statement of claim to be submitted to the Insurance Company.
19. Fire occurred in the premises of Mr. Ramu on 29th April 2020. In order to make a claim on
their fire policies in respect of stock, they ask your advice and you are able to obtain the
following information:
Particulars 2018 2019 2020
Opening stock 32,400 36,000 36,900
Purchases 80,000 81,000 6,000
Sales 1,32,000 1,40,000 12,000
Wages 19,000 20,900 2,000
Closing stock 36,000 36,900 ?
The stock salvaged was ₹2,000.
It was practice of the firm to value the stock at 10% less than cost.
Determine the amount of claim to be recovered from the insurance company.

20. The Moon Enterprises had insured its goods for ₹1,60,000. There was an accidental fire in its
premises on 20th February, 2018. Which destroyed a major portion of the goods. Calculate the
amount of claim to be lodged, based on the following information.

Particulars ₹
Stock on 1.4.2016 1,44,000
Purchases during the year ended 31.03.2017 5,84,000
Purchase returns during the year ended 31.03.2017 8,000
Stock on 31.03.2017 2,01,600
Sales during the year ended 31.03.2017 6,56,000
Sales returns during the year ended 31.03.2017 16,000
Purchases from1.04.2017 to 20.02.2018 1,34,400
Sales from 1.04.2017 to 20.02.2018 1,64,800
Sales returns from 1.04.2017 to 20.02.2018 6,400
Salvage 31,680

The stock have always been valued at 90% of their original cost and gross profit remained the
same.

21. Fire occurred in the premises of Mrs. Rekha on 29th June 2020. In order to make a claim on
their fire policies in respect of stock, they ask your advice and you are able to obtain the
following information:
Particulars 2018 2019 2020
Opening stock 1,62,000 1,80,000 1,84,500
Purchases 4,00,000 405,000 30,000
Sales 6,60,000 7,00,000 60,000
Wages 95,000 1,04,500 10,000
Closing stock 1,80,000 1,84,500 ?
The stock salvaged was ₹10,000.
It was practice of the firm to value the stock at 10% less than cost.
Determine the amount of claim to be recovered from the insurance company.
22. Fire occurred in the premises of Mr. Rajesh on 29th August 2020. In order to make a claim on
their fire policies in respect of stock, they ask your advice and you are able to obtain the
following information:
Particulars 2018 2019 2020
Opening stock 64,800 72,000 73,800
Purchases 1,60,000 1,62,000 12,000
Sales 2,64,000 2,80,000 24,000
Wages 38,000 41,800 4,000
Closing stock 72,000 73,800 ?
The stock salvaged was ₹6,000 and fire extinguishing expenses ₹5,000.
It was practice of the firm to value the stock at 10% less than cost.
Determine the amount of claim to be recovered from the insurance company. Sum assured ₹
1,00,000.