Ques:Mr A prepares accounts on 30th september each year,but on 31st december,2001 fire destroyed the greater part of his stock,following information was collected from his books:
stock as on 1.10.2001 29700
Purchases from 1.10.2001 to 31.12.2001 75000
wages from 1.10.2001 to 31.12.2001 33000
sales from 1.10.2001 to 31.12.2001 140000
The rate of gross profit is 33 1/3% on cost.stock to the value Rs 3000 is salvaged.Insurance policy was for Rs 25000 and claim was subject to average clause.
Additional information :
(i) stock in the beginning was calculated at 10% less than cost.
(ii) a plant was installed by firms own worker.He was paid Rs500 which was included in wages.
(iii) Purchases include the purchases of the plant for Rs 5000
You are required to calculate the claim for the loss of stock.
In the above question how we are going to calculate Gross profit.
Please help.
CAclubindia
